Tuesday, April 21, 2009

A New Metric for Executive + Board of Director Comp

The new metric is % that is SG&A.

Market revenue is beyond anyone's full control. Profitability goes up it goes down. But percentage of SG&A is completely within management's control. So even after the all the layoffs and buy outs and whatever else, our SG&A went up last quarter instead of down.

I think the goal is WalMart 16+%. My bet is that the Craig's List number is closer 3%. But that's only good for new business.

Plus we don't have to wait every quarter to get some info on how it's going.

If incremental changes in the efficiencies of management is good enough for President Obama's administration, I can't see why it's not good enough for everyone else.

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