|
NW Illinois | First part on pay. CEO compensation is determined by the board. How the compensation number is determined usually happens by using their knowledge from previous CEO wages, and in a non Growmark coop setting here CHS would give them guidance on ranges as well. Goes back to previous thread about size of company usually setting the range. Board hires CEO, set base compensation and bonuses are derived from setting targets. Monetary targets like revenue, gross or net, maybe targets based on volumes of sales, and likely targets based on non financial items. Like reducing work turnover, workplace injury or regulatory compliance. From there the board is to stay out of the day to day decisions, they may give some parameters. Whether the CEO chooses path 1 or 2 is his call and has nothing to do with their compensation package. I have never seen a board in charge with setting direct pricing policy and making the CEO enact it for them. Board meets monthly to monitor the coop, resolve any issues and get CEO’s report on business. If the CEO has met theirbonus targets they are paid, whether he is aggressive or conservative.
On number 2. I prefer low margin, no patronage because I can do most service pieces the coop can provide myself. Likely may others, would gladly pay more for quality, timely service since there operations need it. Thus is the problem for every CEO and coop, figuring out how to sell to both completely different clientele groups and which one generates more business.
Edited by SimpleJoe 6/27/2023 13:11
| |
|
Just some thoughs on COOP's
