Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Accrued salary, accrued retirement, and incentive fee - related party

v3.21.1
Note 16 - Accrued salary, accrued retirement, and incentive fee - related party
3 Months Ended
Mar. 31, 2021
Notes  
Note 16 - Accrued salary, accrued retirement, and incentive fee - related party

Note 16 - Accrued salary, accrued retirement, and incentive fee - related party

 

The Company had an outstanding liability to its CEO as follows:

 

 

 

March 31,

2021

 

December 31,

2020

Accrued salaries and benefits

$

856,784

$

848,796

Accrued retirement and other benefits

 

510,538

 

550,191

Offset by shareholder advance

 

(261,653)

 

(261,653)

 

$

1,105,669

$

1,137,334

 

As approved by resolution of the Board of Directors in 1998, the CEO will be paid an incentive fee and a bonus which are payable in installments at the CEO’s option. The incentive fee is 1% of the increase in market capitalization based on the bid price of the Company’s stock beyond the book value at confirmation of the bankruptcy, which was approximately $260,000. The bonus is 0.5% of the increase in market capitalization for each $1 increase in stock price up to a maximum of $8 per share (4%) based on the bid price of the stock beyond the book value at confirmation of the bankruptcy. For the three months ended March 31, 2021 and 2020, the incentive fee expense was $0 and $0, respectively.