CEO & CFO Salaries
This information is being privately emailed throughout the membership and it deserves being aired-out for accuracy and validation. It is being publicly listed that the salaries paid to the past CEO and current CFO might be as high as $1m combined. That is, approx $667k for Doug Egly (former CEO), and approximately $348k for Jeff Smith (CFO). In all other respects, the other salaries listed in this document appear to be in line with their roles. Many members trading this information would like to know if this information is factual, or erroneous, as it seems very high.
Two+ years ago it was revealed that our lines of credit were being used to fund operations and there were questionable accounting irregularities under the watch of our Treasurer. Our CFO continued to paint a rosy picture while repeatedly missing recovery forecasts. The membership frequently received last-minute financial reports, often the night before meetings, that were structured in ways to limit scrutiny. Last year a large group of concerned property owners recognized impending issues and formally requested financial transparency from Gary Baum (Pres), Tom Donohoe(VP) and Jeff Smith. They were stonewalled. Plainly, the members were told that certain financial information will not be disclosed. This needs to change... but there are no means to do so. The Small Biz Association, however, is determined to account for our $1.3m PPP loan.
US Senators earn $174k/year, and the US President makes $400k. The CEO of Ford makes $21m. However, the HP membership is not permitted to know our own executive compensation while at the same time being asked to relieve the club's debt. Why the secrecy? In the absence of transparency we can only assume the facts would not be well received.
With certainty, the new CEO and CFO should be well compensated for success. However, they should not be incentivized for lack of performance. This is the heart of the question. Is the information being emailed around the club accurate? I would like to know whether our CEO has been paid north of $600k per year, and whether our CFO is taking in $340k a year despite underperformance. I would like to know if severance packages were paid while our vendors were not. I would like to know the salary of the interim CEO and how the new CEO will be compensated including incentives and perks.
PDF Document attached for your review, and the source of the information included.
Kaye I am fully aware (as are many others) that you ran a company twice the size of HP- and you ran it successfully. You are 100% competent to assess financials and are entitled to receive truthful information... If for no other reason than being an owner who is now saddled with extreme debt caused by years of financial mismanagement.