Cannabis: Beware the Fake Compensation Survey Data

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

The current President of the US has popularized the term “fake news” – and many believe that his claims of fake news are fake. The cannabis industry is new and entrepreneurial, and companies are constantly looking for information and data to guide their business strategies and operations. The current regulatory climate does not make that an easy task. As a … Read More

We have a new incentive plan, what could possibly go wrong? (almost everything)

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

In this week’s edition of The Economist, the columnist Bagehot writes “How the British government rules by algorithm” (subscription required, and well worth it!). Compensation professionals: don’t leave this blog posting just yet. I’ll cite three examples they reference that speak for themselves, all direct quotes from the concise one-page article. “Targets create three common problems. They produce perverse results … Read More

Current Trends in Executive Compensation in Cannabis: Trulieve Cannabis Corp.

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

Fred WhittleseyCannabis Compensation ConsultantsT I reside in the US, in the State of Washington where cannabis is legal. Vertical integration is prohibited, but it’s a start. We, of course, are neighbors with Canada where the legal status of cannabis is quite different and there is a lot of complexity about where companies are headquartered, the subsidiaries they have and where … Read More

“Retirement” or “Severance” and the disclosure of either or neither or both

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

Topic: Executive CompensationSub-Topic: Compensation Arrangements for Departing ExecutiveCompany: Arena Pharmaceuticals (ARNA) Most small companies have no retirement benefits or pensions, especially entrepreneurial cannabis companies. This follows the pattern of technology company startups over the past several decades. They frequently have severance arrangements for departing executives, and these are quite varied, from “none” to “lots” and every gradation in between Arena … Read More

Cannabis Compensation #4: What are cannabis companies like us doing about compensation?

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

Most public companies, and many private companies, develop a group of “peer” companies for compensation comparisons. And most generally follow the policy of Institutional Shareholders Services. ISS dictates that companies select peers based on the company’s industry code (GICS) and size (revenue and market cap). That is just not possible in the cannabis sector, because it is not an “industry” … Read More

The Problem with CEO “Pay Cuts”

Fred WhittleseyConscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

CEO “pay cuts” are in vogue, from 100% salary reductions at companies including Alaska Airlines, Marriott, and Dick’s Sporting Goods to meaningless cosmetic actions like the CEO of Southwest Airlines taking a 10% salary reduction.  These actions are concentrated in the industries most affected by the COVID-19 crisis:  Airlines, hotels, movie theaters, restaurants, and the like. These range from 100% salary reductions … Read More

Cannabis Compensation #3: Live

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

  I will be presenting at the Global Equity Organization (GEO) Americas Regional Conference on Tuesday, 22 October, in Huntington Beach (do I need to add “CA” to that?  No.) I co-founded GEO in 1999 and at that time could not have imagined there would ever be a cannabis-related presentation at one of the conferences.  But here we are. The … Read More

Cannabis Compensation #2: Executive Compensation in Cannabis Companies

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

From the Cannabis Compensation Consultant “A page-by-page peek at pair of popular pot periodicals and the people who publish pages for the partying portion of the population.” That was the subtitle of a term paper in Journalism 101, circa 1976, and the professor was the founder of the LA Free Press, Art Kunkin (died 30 April 2019). The paper received a … Read More

Cannabis Compensation #1

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Effective Equity: The Equity Compensation Blog, Pay and Performance: The Compensation Blog

From the Cannabis Compensation Consultant I did inhale.  I also held it in as long as I could to maximize the effects. Who would have thought that would ever intersect with my investing activity and commentary on executive compensation? (Full disclosure: I reside in the state of Washington where recreational cannabis is legal. We have a pot store just about … Read More