Originally posted by stan255
In terms of employee expenses, ZEN has 7.3m vs PEA's 11.6m.
The more important metric is employee expenses as a % of sales - ZEN is 14.3% vs PEA's 17%.
To me, that means ZEN's management team is doing more hands-on work than PEA.
With that said, I think a more important metric is ROIC (I calculate mine based on EBITDA).
ZEN 44% vs PEA 26%.
ZEN's management team is better at allocating capital vs PEA and IMO is it because ZEN's management cares more because they have more skin in the game.
For PEA if you take out Ken's 209m shares, the management team for PEA only has 5.6m shares which is around 1.5% of their shares outstanding.
As I said stan255, I'm far from any expert, but looking at your figures it would be good to know how many employees each company had, which without knowing, I would have expected that PEA, being the larger, would have the greater, but I may be wrong.
But regardless as to just how much "skin" Zenith has in the game, I still can't see how they can justify such high wages, but I guess when you're the one dealing out the coin, you can decide how much to pay yourself.
It would be also interesting to hear just what the non exec staff think of the exec's pays and whether they share your sentiment that they care more.
