[cluckindan]

And thus we get into the territory of profit hiding and transfer. Executive consultancies are a common mechanism for doing that, as hourly fees can be exorbitant without anyone batting an eye.

It lowers the profit of a public company, thus decreasing pressures to pay a dividend, while the consultancy leeches money and pays it forward to some other company in which the public company’s founders/executives are direct beneficiaries.