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by anon01
5162 days ago
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What about the entrepreneurs who pay themselves ridiculous salaries once they get even a little funding? It seems like a great way to make money. Our founder is the highest paid person in the company and we live one month at a time because of it. Is this common during the bubble, or is my situation unique? Highest paid is fact, one month at a time is opinion. |
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Yes. We saw it a bunch during Bubble v1.
I thought it was nuts then: Weren't the people/VCs supplying the money paying attention? After a while, you realize that easy money covers up a lot of sins over several levels of the foodchain.
When money tightens, those sins will be expurgated, but until then: Party on.
EDIT: To expand a bit, it's not "normal" as ericflo says in another reply and I agree it's a "bad" sign.
I'm just pointing out that as long as those supplying the money are seeing positive returns, they're busy working their other opportunities. When Sequoia republishes "RIP: Good Times", out comes the microscope on spending and board meetings will go over details that were ignored before.