Reuters: Salary.com sets IPO at 5 mln shares, $8-$10 each. Salary.com, which provides on-demand compensation management products, set on Friday its planned initial public offering at 5 million shares for an estimated price of $8 to $10 each.
When I saw the above article, I headed straight to SEC EDGAR to take a peak at Salary.com’s material contracts. I wish they had more employment agreements on file, but I could only find the employment offer letter between Salary.com Inc. and Kenneth S. Goldman. Naturally, the question that follows is how does his compensation compare with Salary.com’s salary range? From the offer letter, we can see that Kenneth Goldman was offered a position as the Senior Vice President and Chief Financial Officer for Salary.com, Inc. In terms of compensation, here’s the relevant paragraph from the offer letter:
Your overall annual total cash compensation package for expected performance should total $259,000.00 per year. This will consist of a base salary of $185,000.00 and an annual variable incentive component targeted of forty percent (40%), as part of the senior management bonus pool; based on your individual and team performance, as well as the company’s satisfactory performance against goals and objectives.
Next, I hopped onto the Salary.com website and looked up the salary range for CFOs in Needham, MA, where Salary.com is located.
Uh, his base salary is in the bottom 10th percentile. I think he needs to go back in and ask for a raise based on the salary data he found on some job salaries website. 🙂