just looked at NGVC which has 5x the sales and a large insider ownership and the CEO there makes 619K so take that for what it's worth as well. Oh, and I sold my shares right after reading the transcript for the last earnings report.
Yes, agree CEO and CFO salaries are a bit high. However I think we must not discount the fact they are owners. Would we want outsiders come in with higher salaries in this world of CEO;s high salaries when many are not vested in company they manage. It would cost a bit more to get someone with potential take this company to higher level.
It is everyone dream to manage their own company . Let them benefit from their efforts. You would do the same.
My family enjoys kefir. However, there is no question the CEO and CFO pay are out of proportion in comparison to similar companies. Since the family already owns a controlling interest with their shares, they can act greedy and get away with it. The best way for both family and shareholders to make money is through stock price appreciation, not high salaries beyond what would earn being at a food company of similar size.
"Let them benefit from their efforts."
I agree, but HOW MUCH should they "benefit"? Their dad started the company.
No, I don't believe I would do the same.
LWAY is not a large company. IMO, LWAY has A LOT of potential. To achieve this potential, it has become increasingly clear that LWAY needs a leader who has the experience to grow the business. Dangle Julie's TOTAL COMPENSATION in front of a few qualified candidates who want a challenge and I bet there would be more than one taker (toss in some incentive options to boot!).
The fastest way to unlock lil LWAY's potential would be to sell it to a larger food company that has the money and marketing SKILLS to SELL the flagship products. Alas, this will never happen. Mom, Julie and Ed have a very good thing going--why would they ever give that up?
Absolutely, IMO, sister and brother are overpaid (don't get me started about mom earning over $600k last year); not only via salaries, but also bonuses, and "other compensation" which last year included $8400 for car lease payments and $4740 for insurance premiums but "only" 1140 for fuel! If the insurance payment is solely for the vehicle, yikes! $8400/12 = $700 pe month for a car lease payment--in this interest rate environment????
But what can one expect when the family conrols the company?
No one is holding a gun to my head to hold, but I do feel fleeced.
If only lil LWAY would hire someone with REAL industry experience to push LWAY from consistently being a "small company" into a successful larger one. I'd say start with getting the word out about its flagship product. Speaking of products, this company sure does have A LOT of them.
This is why I don't invest in this company, as there is a such a thing in my book as insider ownership being too high.
That said, they do make a great product, and I've been drinking their kefir for a while now. There was a few times in my past where I had been dosed up on lots of antibiotics for a long time, and I believe that may have allowed an unhealthy increase in yeast population, which can obviously cause issues in the body.
I believe that the kefir has been helping me restore that balance.
Anyway, if insider ownership were to come down, and the executives' compensation come more in line with the company's financials, then I would consider owning some shares.
Interesting company, nonetheless. I hope they continue with their mission.