Director help required - I'm lost!

[s 8 grn]

Hi,

I'm sure the PH fountain of knowledge can help me.

I've just been offered a new job as Managing Director of a printing firm. All my life i have worked for blue chip companies that offer job security, loads of benefits and therefore financial stability.

The owner is willing to offer a decent salary but what I need to know what to push back with in terms of shares in his company and how to do it! I realise that shares are worthless if the net value of the business is zero however I don't belive this to be the case. The guy has grown the business as far as he can and is now looking to expand but needs my experience to help him. I'm very conscious that if the company grows to projection then I want a share of it. On the other side he may not be willing to lose control of what he has. A mate has told me that there are a variety of different share options available -i.e. not controlling shares .....

Ultimately if it doesn't work out I want the security of a pay off and a share of the success.

As you can probably tell I'm in new teritory and lost.

What should I do?

Cheers.

[Davel]

The way in which you tackle the guy over this depends partly on how much you want the job.

If you are keen to take the MD'ship on, then why not simply tell him that you want the job but would like the remuneration package to include a bonus system related to results and preferably in a share type structure.

Perhaps you and he could then discuss it with his accountant or someone independant.

What you don't want to do is get him on the defensive by coming up with a demand which he may not be prepared to consider at this stage. Many business owners are terrified of losing control of the company and it often has to be gently handled with family businesses.

Sorry if this sounds patronising....

[mybrainhurts]

Look very carefully at the printing industry before you jump.....it once bit me badly.

If the business can't afford to keep up with technology, forget it.

[Broccers]

mybrainhurts said:

Look very carefully at the printing industry before you jump.....it once bit me badly. If the business can't afford to keep up with technology, forget it.

Very true.

Print Management is where its at

[bjwoods]

One slightly negative thought, if you are not already in the position from a business perspective, to answer the question yourself, are you really ready for the role of managing director. I assume you know the 'business' ie the industry. but lack experience involved /plus legal obligations risks of being a director.

Could STILL BE A VERY GOOD opportunity TO TAKE the Next Step up.

Have a word with a friendly lawyer, who specialises in commerical affairs. don't wantto sound patronising, after all only an email forum, don't know the business, exact situation, etc,etc,etc.


Good Luck, being 'nearly' your own boss is much better for some people than being yet another (all though highly paid sometimes) corporate cog


EDITED to add, This type of scenario is usually one of the trickiest, owners founders, trying to step back/expand, is notorious for the owner fail.ing to let go sufficient control/interference....
It need to be structured very well for BOTH parties, for it to work. Only you know the personal realtionship, whether it will work or not.

If the onwner is only offering a salary, but no expectation of a share, bonus at this stage, he is probably not prerpared to let go control... He SHOULD expect any potential Managing Director to want this, ie shoulder some risk/profit, and would offer someting along the lines up front (but not obviously the final negotiated figure)

Offereing a salary indicates he really wants a manager - but sweetened with a nice title.

B

>> Edited by bjwoods on Monday 21st March 13:11

>> Edited by bjwoods on Monday 21st March 13:15