2021 CEO Bonus UpdateHello fellow Verde shareholders,
With the great numbers in the 2021 Q2 statements, an obvious question is how is the CEO doing towards earning his potential performance bonus in 2021? You will recall he can earn a cash bonus on a sliding scale from $210,000 to $420,000 (50% to 100% of his base salary) based on a straight calculation of improved EDITDA (before non-cash events and giving effect to the cost of the CEO bonuses)of between 45% and 115%.
Based on the 2020 audited financial statements, in 2021 the improved EBITDA would need to hit $3,159,300 to qualify the CEO for the $210,000 minimum bonus, or $4,373,100 to achieve the $420,000 miximum bonus.
After actually recording a decline of the measured EBITDA performance in Q1 2021, the better performance in Q2 has turned this around, and the 6 month YTD bonus EBITDA figure has reached $524,000. While this is a positive movement over Q1, it still leaves a significant stretch for Q3 and Q4.
In order to reach the threshhold for the minimum bonus, the Company will need to report total second half EBITDA of $2,635,300. For the full bonus of $420,000, the second half EBITDA would need to reach $3,849,100. The comparative number in the 2nd half of 2020 was $2,303,000, so not a huge stretch in 2021 2nd half to hit the minimum level (plus $332,300) but a bit more challenging to get to the maximum bonus (plus $1,546,100).
That being said, a potential Q3 sales figure that might equal the entire sales for the 2020 year would certainly make hitting these bonus targets a done deal. We will wait until the Q3 results are released in November to find out.
Have a great week.
S.