Results 1 to 6 of 6

Thread: Appropriate salary

  1. #1
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Appropriate salary

    Following situation:

    I have planned a business from scratch, including marketing, found all suppliers, negotiated contracts and so on, just everything. I have already built up another business and have about 10 years of management experience when it comes to that.

    Now I have found investors and the company is equally shared. I am the only active person as I am the only one in the country and I will continue doing my work.

    Question is: what’s an appropriate salary to be paid to me for doing all this work, managing and running this business in the future and at the same time building up more of those shops to make it grow into a franchise.

  2. #2
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,332
    Thanks
    38
    Thanked 566 Times in 413 Posts
    Blog Entries
    7
    You and your partners should look at what the market is paying for the position that you are in. If some of teh tasks are beyond the scope of the industry norm for your current position tehn factor in the cost of a consultants fees. Eg If the industry norm for your position is R10000 but you do about 20 hours a month of work that persons in that position would not normally do then add on say 20hrs times R250 and you get R15000 in total. As to the growth of the business and the franchise perhaps a share option, which gives you equity and cashflow, or profit share, which does not give you the equity. Alternatively a combination.

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,649
    Thanks
    3,305
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    I suppose the correct way is the shareholders appoint the CEO and approve his/her salary. As a start-up, at this point just what is available to be offered should be guided by the business plan.

    It's at times like these that awarding shares to the CEO makes sense.
    Or a percentage of profit growth.
    Last edited by Dave A; 01-Nov-09 at 10:01 PM.

  4. #4
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Everything turned out great. Every of the 4 parts gets 25% shares, and I get a salary on top of that.

    They offered amount A, I said amount B and we just met in the middle - perfect negotiations.


  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,649
    Thanks
    3,305
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12

  6. #6
    Suspended
    Join Date
    Oct 2009
    Location
    Cape Town
    Posts
    390
    Thanks
    407
    Thanked 55 Times in 43 Posts
    I stay out of determining salaries. My talents lay in helping SMEs to survive.

Similar Threads

  1. [Question] Non-payment of salary - what recourse to employee
    By Morticia in forum General Business Forum
    Replies: 8
    Last Post: 28-Oct-11, 09:25 AM
  2. [Question] Duplication of Salary : Claim Gross or Net Salary
    By Suu in forum General Business Forum
    Replies: 6
    Last Post: 24-Oct-09, 06:09 PM
  3. TCE/Bonus Salary
    By Cape365 in forum General Business Forum
    Replies: 6
    Last Post: 18-Dec-08, 08:17 AM
  4. Salary increases
    By Dave A in forum Business Finance Forum
    Replies: 4
    Last Post: 09-May-08, 04:44 PM
  5. Teachers need detailed salary advice
    By Dave A in forum General Regulatory Compliance Forum
    Replies: 0
    Last Post: 07-Dec-06, 08:45 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •