More for Less

October 23, 2000

Just got off the phone with SD, and the deal is not dead, although in my mind it has been terminally afflicted.

Seems that they want to structure the deal so that there is a base compensation package, and the balance through a bonus arrangement. That being said, if the totals at the end of the year are ok, then the whole deal is good.

However, banks don't issue mortgages based on "incentive compensation."

California is an expensive place to live.

Then there is the issue of the whole "package." that includes a percentage of ownership in the division I would be heading up. That percentage of ownership would share in the percentage of annual profits.

Soooooooooo... If I am really any good at what I do.....then the whole thing grows, and then the income would grow with it.

All that said, we are still at the point of our last phone conversation, that being that the firm wants one more thing from me, notably a detailed business plan.

And then there is me, not being willing to provide free lunches, called today to discuss that issue with them I politely suggested that we go at the issue from a different point of view, namely that they pay for the business plan, especially since I need to spend some time with consultants who will charge me.

Seems to me, that if you want a house built, the place you start is with the architect.

After plans are in hand, then you interview builders.

They were open to the thought, and wanted more details, such as the cost of the business plan.

I suggested to them that their base pay package would preclude me from being one of the builders that they could consider. The response was that we were not that far apart.

One associate who I trust completely, suggested that being able to jump aboard a moving locomotive is a very big thing, no matter what the amount of base pay is on the table.

So I suppose the point of all this is that we are still talking, even though the house we wanted has sold.

Meanwhile I am putting together the pricing for for "business plan."

At this stage of the game, I am not handing out any free lunches, not even hot dogs.