Cannabis Compensation Consulting
While many refer to the “cannabis industry” it is, in fact, not an industry but a sector. The wide range of business activities relating to cannabis span many SIC codes (created in 1937, the year of the Marihuana Tax Act) and NAICS codes and GICS code.
For example, if you viewed the list of the 53 cannabis companies that are publicly-traded in the US, you would find that the antiquated SIC coding systems places these companies in industries including agricultural products, cigarettes, household furniture, malt beverages, medicinal chemicals and botanicals, miscellaneous plastic products, pharmaceutical preparations, retail – building materials and hardware, retail – miscellaneous, services – computer processing and data, wholesale durable goods, and real estate. Each of those 53 companies do some or all of those things.
Understanding compensation strategy in cannabis companies requires understanding where in the chain the company is operating and how many distinct sets of industry compensation practices and cultures are represented under one corporate entity. Or, in the case of many cannabis companies, multiple corporate entities. In multiple countries.
So, beware. If a firm tells you they are expert in compensation in the “cannabis industry” you might ask “which parts” of the sector?
Visit the Clients section of this site and you will see that CVG, and Cannabis Compensation Consultants, has decades of experience in each of the many sub-industries of the cannabis sector and with clients that straddle more than one narrow industry definition in a vertically integrated business.
CVG maintains the only comprehensive database of executive compensation practices in the cannabis sector, including CEO and CFO pay levels and mix, and a map of executive talent coming to and leaving from the cannabis sector – helping to identify true talent competitors – and the peer groups of those source and destination executives’ companies.
We are active investors, content contributors, and advisors in the cannabis sector and are members of:
Keep up with the most recent developments in cannabis compensation at our blog.