Thursday, June 09, 2005
One Meeellllion Dollars*
Top Management Gets Big Payouts in Successful Equity Deals
Nice piece from Folio:'s Tony Silber on how top management may or may not be rewarded when a private-equity backed company sells.
Grab: “The opportunity exists for a CEO of a successful leveraged deal to make several million dollars, and for the top management team to make seven-figure returns,” says one former executive who is familiar with the structure of such deals. “However, it all depends on the returns that the equity-investors get. It could be zero or it could be a lot of money.”
Tony crunches the numbers on who typically gets paid what in such a transaction.
*I really don't know how to approximate Dr. Evil's infamous ransom demand in print. So here's an audio clip.
Comments
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Nice piece from Folio:'s Tony Silber on how top management may or may not be rewarded when a private-equity backed company sells.
Grab: “The opportunity exists for a CEO of a successful leveraged deal to make several million dollars, and for the top management team to make seven-figure returns,” says one former executive who is familiar with the structure of such deals. “However, it all depends on the returns that the equity-investors get. It could be zero or it could be a lot of money.”
Tony crunches the numbers on who typically gets paid what in such a transaction.
*I really don't know how to approximate Dr. Evil's infamous ransom demand in print. So here's an audio clip.
