Crazy4Coasters! Posted October 5, 2006 Share Posted October 5, 2006 Does he deserve it? Any comments/opinions? I personally don't think he deserves it, especially while Six Flags is in financial peril!!! Link to comment Share on other sites More sharing options...
Crazy4Coasters! Posted October 5, 2006 Author Share Posted October 5, 2006 By the way I got the information from www.screamscape.com Link to comment Share on other sites More sharing options...
YoshiFan Posted October 5, 2006 Share Posted October 5, 2006 I do not think he deserves it. Every time someome complains about the ridiculous prices at Six Flags ($15 parking, $3.50 sodas, $6.50 slice of pizza etc.) people say that the company is in such debt that they need to raise prices to get out of debt. Get the company out of debt first or reduce the debt, then worry about pay raises for the people in charge at SF. Link to comment Share on other sites More sharing options...
downunder Posted October 5, 2006 Share Posted October 5, 2006 If it was based on how much value he has added to Six Flags he would owe them, he talked the talk but he didn't walk the walk as far as I am concerned - another dissatisfied Sux Flags customer. So much for so little, maybe Shapiro and Snyder are real close. Link to comment Share on other sites More sharing options...
Twister II Posted October 5, 2006 Share Posted October 5, 2006 If he was really concerned about getting the company out of dept, would he really take a raise? Link to comment Share on other sites More sharing options...
pgathriller Posted October 5, 2006 Share Posted October 5, 2006 They can always sell X or Tatsu for his pay raise. I don't think he'll mind. The way I see, Shapiro isn't really doing much good to the Six Flags chain. I think Six flags is ultimatly doomed. Maybe not in the near future but I see it happening down the road if major changes don't take place. Link to comment Share on other sites More sharing options...
DRWP2005 Posted October 5, 2006 Share Posted October 5, 2006 Well I guess they see it as, when your 2 Billion in debt, whats an extra 300,000? I don't really think this was the best idea, not too sure what they were thinking here. They had to know this was going to piss off a lot of people. Link to comment Share on other sites More sharing options...
coasterjunkie91350 Posted October 5, 2006 Share Posted October 5, 2006 hey with all the money they owe nobody in the head office should get a pay hike not till they work for it as far as im concerned the credit reports are against them in the long run Link to comment Share on other sites More sharing options...
Crazy4Coasters! Posted October 5, 2006 Author Share Posted October 5, 2006 I agree with everyone here. What the hell is six flags inc. thinking about giving a $300,000 raise in the midst of financial debt. You gotta be kidding me!!! Link to comment Share on other sites More sharing options...
Shockwave Posted October 5, 2006 Share Posted October 5, 2006 $300,000 isn't exactly going to make much of a difference to the debt, and I don't think Shapiro's pay ride will be piled on top of Six Flags's money problem, I'd bet on it coming from one of the other prospects that Dan Snyder has. The debt will need to be resolved by selling off rides and parks surplus to Six Flags's requirements. That said, $300,000 would be better spent on the upkeep of a few of the parks that need it the most. Link to comment Share on other sites More sharing options...
BDG Posted October 5, 2006 Share Posted October 5, 2006 So, he could earn up to 2.9 million ? (1.3 million salary, 2.6 million bonus) The average operator has to work 120 years for that money. Link to comment Share on other sites More sharing options...
ginzo Posted October 5, 2006 Share Posted October 5, 2006 I do not think he deserves it. Every time someome complains about the ridiculous prices at Six Flags ($15 parking, $3.50 sodas, $6.50 slice of pizza etc.) people say that the company is in such debt that they need to raise prices to get out of debt. Get the company out of debt first or reduce the debt, then worry about pay raises for the people in charge at SF. Personally, I think their inflated prices just dig their grave deeper. I almost never buy food or souvenirs at Six Flags parks, because they're just too expensive for what you get. I tend to eat immediately before going in, and then when I leave. I might have a snack or something inside the park, but I never get a full meal. Who wants to pay that kind of money for *bad* food? If they had better food at more reasonable prices, convenience would certainly win and I'd eat at their parks more. Link to comment Share on other sites More sharing options...
ginzo Posted October 5, 2006 Share Posted October 5, 2006 So, he could earn up to 2.9 million ?(1.3 million salary, 2.6 million bonus) The average operator has to work 120 years for that money. Him getting a raise at this stage in the game is obviously a bad play. It just looks like greed. I can't think of anyone that gets a 30% raise these days other than CEOs. I think my raise for this year was something pathetic like 2%. I'm sure Shapiro's view is something along the lines of he's taking a huge risk trying to turn this company around. So, he better get the money while he can, because his name will be dirt if this goes poorly. I can't blame him for that, but he should have just gotten more money up front. It looks really bad to squeeze more money out of the company when it's still doing poorly and you're looking to liquidate assets just to get out of debt. The problem with CEO pay these days is, according to research, it's not linked to CEO performance. That is, CEOs are paid obscenely even when the company is doing terribly. The good CEOs are paid as well as the bad ones. Had this been a banner year with record attendance and significant debt reduction Shapiro giving himself a raise would be fine. Under the current circumstances, it looks fishy. Link to comment Share on other sites More sharing options...
ECZenith Posted October 5, 2006 Share Posted October 5, 2006 Ya know, I saw this and I was not surprised in the least bit. What scum... wait till you see all the great new things we get in '07. Link to comment Share on other sites More sharing options...
SharkTums Posted October 5, 2006 Share Posted October 5, 2006 Hmm, funny...I have my letter here from Shapiro that they're freezing all raises and bonuses for fulltime employees! I guess he's above the law! But on the other end of the spectrum, I'm actually shocked he was only making 1mil. Doesn't seem like enough for such a large company. Yes I know the company isn't doing well, and he shouldn't have gotten a raise, but that's not really that much money to be making for someone in his position. Link to comment Share on other sites More sharing options...
redfoot12 Posted October 5, 2006 Share Posted October 5, 2006 Actually, $300K doesn't seem like too much of a raise compared to what other executives get. Link to comment Share on other sites More sharing options...
ParkTrips Posted October 5, 2006 Share Posted October 5, 2006 So are they freezing salaries again? I thought they did that last winter too... My reaction was the same as Elissa's, his salary is quite low for a CEO. Not that I think a CEO should EVER get a raise in a year when the company fails to turn a profit, but he really kinda is underpaid. He left ESPN even with an estimated $10,000,000 guaranteed salary and bonuses, and he was just a VP there! Link to comment Share on other sites More sharing options...
Guy T. Koepp Posted October 5, 2006 Share Posted October 5, 2006 Not that I'm defending his pay rate. But, he may have a pre-negotiated contract with Snyder. 1 mil for the first year, 1.3 for the second, 1.69 for the third. He may have negotiated for a upward sliding scale of 30% each year for a 3, 5, or 7 year deal. He also probably negotiated for a %age bonus, or some kind of stock deal, if he does start to turn things around and get the company back on it's feet. This would not surprise me. It's what I would've done. We'll see, as this year will be the first that He and Snyder realy have complete control of the budget. Last year when they took over they came in at a point when all the capitol investments had been made and contracts had been signed. Not to mention the 120mil in new rides that were all well underway to being built. Another bad beat were the "Golden Parachute" deals that the ousted board members created for themselves. Those alone could have staffed and compensated for all of the year end cuts that 6F is seeing company wide. Just my 2 cents as a stock owner in the company. I still have a lack of confidence in both gentlemen, however I'm willing to give them a couple of years to try. Then I will begin my campaign to take over the company. I honestly believe I have some great ideas that would work well for them. Mmmuuuuhaaaahaaaaa! Link to comment Share on other sites More sharing options...
ginzo Posted October 5, 2006 Share Posted October 5, 2006 I'm actually shocked he was only making 1mil. It was more than that. His compensation package includes salary, bonus, and stock. http://biz.yahoo.com/e/061002/six8-k.html In addition to such terms, the Agreement provides that Mr. Shapiro will receive a base salary of $1.3 million commencing on January 1, 2007. The Agreement also provides that (i) Mr. Shapiro will have a target bonus of $1.3 million rather than $1.0 million as previously disclosed; (ii) a maximum bonus set at $2.6 million rather than 200% of base salary as previously disclosed and (iii) 50% of the restricted shares granted to Mr. Shapiro will vest on each of the third and fourth anniversaries of the date of grant rather than 100% on the third anniversary of the date of grant as previously disclosed. Their market cap isn't even half a billion these days. I'd say his current package is about righ for the size company that they currently are. If he can turn the company around, which I really hope he does, he certainly deserves a raise. But, I don't think you can justify that much more compensation for this company in its current state. Link to comment Share on other sites More sharing options...
pvcoasterguy Posted October 5, 2006 Share Posted October 5, 2006 Here's my thought: Shapiro has an idea of what is needed. He knows the families are the real money makers, and that big steel coasters won't always pay off, especially when a park gets one too often. He knows improvements need to be made, and he tried in vain this year to perform what he said he would. But, let's face it, the Six Flags company is truly screwed up. I think Shapiro has the right idea in narrowing up the company--if they focus on their best parks and their best parks alone, those parks can only grow and flourish. Six Flags could have some real quality parks. But right now, they are kind of getting shafted due to the crappy parks in the chain. He's trying damn hard, and he has some great ideas. I think he deserves the raise. 2007 is still looming, and hopefully Shapiro will improve the company some more. Because, let's face it: Six Flags this year is doing better overall that Six Flags last year, in terms of guest experience. Especially for the parks like Great America, Over Texas, Over Georgia, that have improved greatly even though it wasn't necessary for those parks, as they had a good guest experience prior to the changes of Shapiro. My idea for the company is this: try to fix the middle management at each park. Let's face it--one of the reasons SFMM is as crappy as it is now is because of their horrible middle management. There needs to be sufficient communication because the lower-level managers and the higher-ups, and that simply isn't happening right now. The lower-level managers are directly related to the guest experience, and if there is bad lower-level management, the park will never achieve its potential. Shuffle things up down there, Shapiro. That is what is hurting the guest experience most. Because teenagers can be good workers--they just need good management to ensure the proper things are happening, and that their workers are motivated. Link to comment Share on other sites More sharing options...
Tiburon503 Posted October 5, 2006 Share Posted October 5, 2006 Shapiro's performance at ESPN was shoddy by most people's standards. He tried to put the "entertainment" back in the channel's namesake, and failed MISERABLY (Playmakers anyone?). Mark's track record successfully followed him to Six Flags. RedZone fleeced a company for almost $130M+ for a proxy fight reimbursement, and raised the CEO's salary on a agreeably horrible season. People may say $300,000 won't make or break a company $2B+ in debt; then why did the company eliminate many seasonal, low wage employees? How much money did those cuts save the company? Why simply return those savings to a single officer? Mark Shapiro talks a good game, but is in way over his head. He couldn't manage the chain on the budget he was handed. If a company has budget over-runs, you forfeit your salary temporarily and take it back on the options end later on. (See Steve Jobs) That $300,000 (~27,272 man hours at $11) might have been better spent staffing Six Flags Magic Mountain. Oh that's right. That place is a pimple on the corporate ass not worth fixing. Let's simply dump it for the real-estate and pay ourselves a huge bonus. I'd like to see what SIX's earnings are when you throttle back the ticket/parking price increases. I bet those figures paint the future prospects of this company in a much bleaker fashion. Hopefully, some sleeping giant will see the theme park business is worth running. They have to salvage what's left of Six Flags before Shapiro sells it off. Then again, by the time Shapiro sells off enough parks to actually try and band-aid his vision, SIX will be ripe for a hostile takeover (I can see Cedar Fair wanting the Texas, Georgia, St. Louis, and New Jersey parks). Show me a company that sells off profitable entities, and I'll show you a company looking for an exit strategy to go out of business. I'm willing to bet SIX looks VERY different in 5 years, and much worse. Link to comment Share on other sites More sharing options...
ginzo Posted October 5, 2006 Share Posted October 5, 2006 If a company has budget over-runs, you forfeit your salary temporarily and take it back on the options end later on. (See Steve Jobs) That's hardly a fair comparison. Jobs was already a billionaire when he came back to save Apple. I do agree with most of your points though. Selling off performing units is suicide. That happened at my employer. Link to comment Share on other sites More sharing options...
FlippyTrick09 Posted October 6, 2006 Share Posted October 6, 2006 got a 30% raise... with the money they got from selling Six Flags Magic Mountain Link to comment Share on other sites More sharing options...
DATman Posted October 6, 2006 Share Posted October 6, 2006 He isn't fixing the chain. He's selling off the bad parks to make the chain look good. SFMM could be a decent park if he just tried. Isn't that his job, anyway? It isn't byond repair, but he wants to sell it any way? It is so stupid. If he fixed it up, it could easily be the flagship park again, as SFGAdv is just a nightmare with operations, and they don't know how to handle El Toro in any way. SFMM at least had a better run in the beginning of Tatsu, but now they fail at that. If he just made an effort and raised their budget, he could fix that place, and he'd be so happy he didn't sell it. I think it'd be funny if he sold it, another chain bought it, fixed it, and it did better than SFGAdv. Link to comment Share on other sites More sharing options...
Ccron10 Posted October 6, 2006 Share Posted October 6, 2006 I don't know but I would be more concerned about getting the company out of debt than accepting the pay raise. It sounds like he's only looking out for himself instead of the company. With all the expensive prices like $50.00 for admission and another $ 15.00-$20.00 for parking! People are better off going to Cedar Fair where admission is only $35.00 or more sometimes including a water park once and a while and parking at only $7.00 or $8.00. Shapiro acting like a money hog. That's just my $0.02. Link to comment Share on other sites More sharing options...
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