NEW DELHI: Brendan Kennedy knew early on that his guess on marijuana would take years to repay—if in any respect.
It’s “both career suicide or it’s the neatest decision we’ve ever made in our lives—and we won’t know for three to five years,” Kennedy advised Bloomberg in 2012.
The windfall didn’t arrive for 6 years, but close enough. In July, Tilray become the primary cannabis company to checklist its shares on a US alternate and rode a wave of investor hype to finish 2018 with a 315% acquire. That made Kennedy, its 47-year-old CEO, the 2d-highestpaid executive in 2018 among companies traded on US exchanges, in step with the Bloomberg Pay Index. His $256 million compensation package deal trails simplest the $513 million Tesla awarded to Elon Musk.
Bob Iger of Walt Disney stood 3rd within the pay ranking. He’s followed by way of Apple’s Tim Cook and Nikesh Arora, the former SoftBank Group executive who took over as CEO of Palo Alto Networks closing 12 months. Kennedy, in contrast to the opposite four, hasn’t prior to now been a number of the world’s top-paid managers. With Tilray, he joins exclusive club of entrepreneurs whose gambles yielded compensation packages of a magnitude hardly ever observed at bluechip companies. Examples come with Snap’s Evan Spiegel, who was once crowned the king of pay for 2017 with a half-billiondollar package deal, and GoPro’s Nick Woodman, who led the checklist in 2014 with $285 million.
Like Kennedy, Spiegel and Woodman won large packages tied to their companies successfully launching initial public choices (IPOs).
“IPO grants serve two functions — alignment with shareholders and retention, because an executive disruption at that degree can also be very problematic,” mentioned Aalap Shah, MD, Pearl Meyer, a consulting firm that specialises in executive compensation. “The thing for shareholders to question is diminishing returns. Is there some extent where the IPO grant isn’t actually profitable?”
The Bloomberg Pay Index tracks the 100 highest-paid executives at companies that put up compensation details to US regulators. The figures at the index encompass salaries, bonuses and advantages doled out in the most recent 12 months.
They also come with the worth of awarded stock options and restricted shares that may yield payoffs sooner or later. For comparability functions, all such equity awards are valued at each and every company’s fiscal yearend, not as of the date they had been granted. The index’s figures can due to this fact vary from the ones disclosed in filings—sometimes by way of so much—relying on stock-price adjustments and dividends. Recurring annual grants of shares or options are counted within the 12 months they’re bestowed, not once they vest. Any one-time grant supposed to compensate an executive for several years is allocated over the life of the award as explained in regulatory filings.
Tesla’s Musk, for instance, receives no compensation except massive grants of stock options tied to efficiency. The securities are meant to pay him for a decade. But in cases where the goals had been met ahead of schedule and the options have vested, he’s won new grants.
It’s “both career suicide or it’s the neatest decision we’ve ever made in our lives—and we won’t know for three to five years,” Kennedy advised Bloomberg in 2012.
The windfall didn’t arrive for 6 years, but close enough. In July, Tilray become the primary cannabis company to checklist its shares on a US alternate and rode a wave of investor hype to finish 2018 with a 315% acquire. That made Kennedy, its 47-year-old CEO, the 2d-highestpaid executive in 2018 among companies traded on US exchanges, in step with the Bloomberg Pay Index. His $256 million compensation package deal trails simplest the $513 million Tesla awarded to Elon Musk.
Bob Iger of Walt Disney stood 3rd within the pay ranking. He’s followed by way of Apple’s Tim Cook and Nikesh Arora, the former SoftBank Group executive who took over as CEO of Palo Alto Networks closing 12 months. Kennedy, in contrast to the opposite four, hasn’t prior to now been a number of the world’s top-paid managers. With Tilray, he joins exclusive club of entrepreneurs whose gambles yielded compensation packages of a magnitude hardly ever observed at bluechip companies. Examples come with Snap’s Evan Spiegel, who was once crowned the king of pay for 2017 with a half-billiondollar package deal, and GoPro’s Nick Woodman, who led the checklist in 2014 with $285 million.
Like Kennedy, Spiegel and Woodman won large packages tied to their companies successfully launching initial public choices (IPOs).
“IPO grants serve two functions — alignment with shareholders and retention, because an executive disruption at that degree can also be very problematic,” mentioned Aalap Shah, MD, Pearl Meyer, a consulting firm that specialises in executive compensation. “The thing for shareholders to question is diminishing returns. Is there some extent where the IPO grant isn’t actually profitable?”
The Bloomberg Pay Index tracks the 100 highest-paid executives at companies that put up compensation details to US regulators. The figures at the index encompass salaries, bonuses and advantages doled out in the most recent 12 months.
They also come with the worth of awarded stock options and restricted shares that may yield payoffs sooner or later. For comparability functions, all such equity awards are valued at each and every company’s fiscal yearend, not as of the date they had been granted. The index’s figures can due to this fact vary from the ones disclosed in filings—sometimes by way of so much—relying on stock-price adjustments and dividends. Recurring annual grants of shares or options are counted within the 12 months they’re bestowed, not once they vest. Any one-time grant supposed to compensate an executive for several years is allocated over the life of the award as explained in regulatory filings.
Tesla’s Musk, for instance, receives no compensation except massive grants of stock options tied to efficiency. The securities are meant to pay him for a decade. But in cases where the goals had been met ahead of schedule and the options have vested, he’s won new grants.
A 300% surge makes pot CEO No. 2 in pay list after Elon Musk
![A 300% surge makes pot CEO No. 2 in pay list after Elon Musk]()
Reviewed by Kailash
on
May 21, 2019
Rating:
