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BHS

#1 User is offline   1eyedjack 

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Posted 2016-July-05, 00:24

Dominic Chappell argues that his £2.5m "reward" extracted from BHS is an appropriate compensation for the risk that he bore.

I calculate that his risk amounted to GB£1.00, being the price that he paid to Green for the company.

In what universe is £2.5m an appropriate reward for a risk of £1.00?

That said, I would NOT say that £2.5m is an unfair salary (spread over the period) for a CEO of a company that size. But that is not the argument that he makes. (Whether he was an appropriate CEO is another matter altogether).
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#2 User is offline   barmar 

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Posted 2016-July-05, 09:20

His risk is not just the £1 he paid for the company, but also any salary he could have received by working for some other company instead of BHS. If he could reasonably have expected to be paid tens of millions during the time that he only received £2.5M, he effectively risked all that money.

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