March 5th, 2009 by Arjan Olsder Posted in People | 3 Comments »
Glu's management is working hard to get the company back in a healthy position. One of the steps taken was by Greg Ballard himself as he reduced his salary to give the company more room to breathe.
Earlier today, one of our readers tipped us about the latest change in bonuses that the senior management of Glu can haul in if the company is performing according to set guidelines.
For Greg (who is earning $ 281,250 this year), the bonus went up from 75% to 85%. That translates to a bonus of $ 239,063. Next to Greg, the bonuses of Kevin and Ludwig went up as well. In total, the senior management will earn $ 1,536,250 in salaries and up to $ 808,063 in bonuses over 2009. This totals to $ 2,344,313.
Now, the average annual income for an American is $ 35,499. Let's say $ 50,000 is a nice income for one of Glu's employees that's doing his or her job really good (it's just a wild guess). This means that the senior management is swallowing 46+ salaries. These are 46 additional people that can assist the management in generating revenues throughout the market (let alone, 46+ families that have an income during this time of recession).
Now I'm not saying that the management should give up it's total income, but in a time where Glu is putting people on the streets to stabilize itself financially, this does not sound totally right.
Of course, there is a chance that the senior management is not getting any bonus at all. The company has filed several rules to which the management has to work to be eligible for the payout;
If the Company meets either component at 105% of its plan, then the participant earns 100% of the bonus related to that component, whether or not the Company meets the 105% threshold on the other component. If the Company meets either component at or above 115% of its plan, then the participant earns 130% of the bonus related to that component; however, before either component of the bonus may be earned above target, the 105% threshold must be met on the other component.
If the Company achieves both the Corporate GAAP Revenue and the Corporate Non-GAAP Operating Margin components above the 105% minimum threshold but below the 115% maximum threshold, then the bonus earned will be calculated on a straight-line basis.
On February 25, 2009, the Committee also established the target bonuses under the Bonus Plan for the Company's executive officers as follows:
But there is also positive news as Eric R Ludwig has bought 13K of GLUU shares at $ 0.55 ($ 7150 in total). This made the share price jump up 5.45%.
Perhaps Eric knows something what we all dont know.
Bonus payments are part of the system and ok as long the company is doing good results.
@SamII, that might be right in the old economy, but these days, the management should take responsibility for their actions. We all remember Greg being proud that he had cut down his 2009 salary. Now he’s trying to recoup it via a bonus (a real hero).
the total amount excels the salaries of the ppl that got laid off.
Brb – need to puke.