Yeah, usually they, they're seasoned executives and so they're making a lot of money currently. And so it would be optimal for them to put a quote, unquote, meaningful amount in invested. So meaningful amount is, is different from every, for everybody.
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You know, if they're draining their savings account and, and it amounts to 50,000 or 100,000, as long as that's meaningful for them, that that's okay with us. We just don't want a situation where you know, someone has a multi million dollar stock portfolio and has invested a hundred thousand dollars with us and, and then they're offered a job for $700,000 per year and they leave us. Right.…
And so the amount of money that they bring to the transaction, then that's just, that's just gives them their pro rata share of the equity.
That's right. And then. Sorry, you're saying compensation. So there's.
Well actually ownership and I'm curious. Yeah. Because I assume compensation wise they make kind of a market rate for whatever their salary would be. Kind of a market salary. No.
Yeah, market salary, but not necessarily the same as what they were making before. You know, if they're coming from $100 million business and they're making half a million dollar salary plus bonus. So they could be making up upwards of a million dollars a year and you're buying a million dollar business or you know, a business that earns 2 or 3 million in EBITDA, you can't pay them that, but you…
And so you know, in addition to salary and bonus, which might not be upwards of what I just mentioned, we cut them in on some of the carried interest and you know, it tends to be different for different individuals. We've kind of standardized it now. But you know, in the past while we were playing with the model there was certain individuals that were making more or less or whatever and now…
Well in the Colin case, back to Prosafe, the business doing $310,000 of SDE there, there and now he was younger but still showed a lot of promise that he probably was not getting market, market rate to come run the business. So you probably had to buttress his earnings with a significant share in proafe.
That's a good, I mean in Collins case, I think he was earning at about the same rate or more within this acquisition because, because he was young, because of his age, you know.
Yeah.
When you're 50, 60 years old, your constant pay raises get to a certain level. You know, maybe his, his pay hadn't caught up to him. Although, you know, I can't be certain because I, I don't know what he was making before but I know that he's, he's at a fair level and Colin was our kind of, our first case.
What I did with Colin was what I thought was fair at the time and I didn't. This was 2020. There was, I don't. Was your show around in 2020. There was no comparables for, for what we were doing.
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