As mentioned on yesterday’s call I would be happy to volunteer to participate in this working group.
For those who don’t know me or are unfamiliar with my posts, I’ll provide some brief background and summarize my views. I’ve worked in Finance/Consulting for the past ~10 years within FP&A, Corporate, Operations, and Supply Chain sub-functions. I oversee and have managed 9-digit budgets within OpEx and working capital. I’m currently working for a large public company that’s seen it’s share price 3x and 9x over the past five and ten years respectively - through growth in cash flow and value creation.
I’ve been investing in public markets since 2009, initially focusing primarily on small and micro-cap investment opportunities. I’ve seen a lot of compensation plans through my research digging through SEC filings.
Charlie Munger, Warren Buffet’s business partner that helped build Berkshire Hathaway once said, “Show me the incentives and I’ll show you the outcome”. I believe a well-thought out and structured compensation framework will be critical to the success of MakerDAO and the appreciation of the MKR token.
In my mind, a strong token compensation framework will:
• Attract and retain the best possible talent
• Promote the achievement of key strategy and financial performance
• Motivate long-term value creation; and
• Align the interests of parties receiving token compensation with all stakeholders
To achieve these objectives, we should:
• Have competitive positioning of pay versus our peers
• Deliver a significant portion of pay in the form of variable, at-risk compensation
• Align performance measures with strategy
• Use a combination of vehicles that collectively promote the achievement of positive results, retention and sustainable long-term value creation
If you’re interested in expressing your views - please shoot me a message I’d love to discuss.