CEO salary and subsidiary

Subsidiary DLC for Capitalism Lab
kimsunwoo
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CEO salary and subsidiary

Post by kimsunwoo »

Hello everyone!

I'm new to the forum, but I've been playing the game for quite some time.
I have a couple of concerns that I'd like to address before starting a new game with DLC Subsidiary.

1) CEO salary: how is it calculated? I remember in earlier version of the game a CEO could ask you as much as 150% of the whole company profit... and for that reason I have never used them. I read it's been reduced in several patches, but I could not find how is it currently calculated.
Thinking in having 5-10 subsidiaries it becomes a really important matter. As the salary script can only be used before the game start, I don't want to set it too low or too high.

2) Subsidiary profit and value: what does the parent company receives from the subsidiary? Is it just the dividend in case the subsidiary is set to have it?
If I'm chairman and 60% owner of the parent company, how does it affect my wealth that a subsidiary (fully owned by the parent company) is making tons of money and has a high capitalization?

Thanks in advance for your help.
Kind Regards.
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David
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Re: CEO salary and subsidiary

Post by David »

1) CEO salary: how is it calculated? I remember in earlier version of the game a CEO could ask you as much as 150% of the whole company profit... and for that reason I have never used them. I read it's been reduced in several patches, but I could not find how is it currently calculated.
Thinking in having 5-10 subsidiaries it becomes a really important matter. As the salary script can only be used before the game start, I don't want to set it too low or too high.
The formula for calculating it is quite complicated, taking into account of many factors. We are open to further reducing the CEO salary in the next patch. How much reduction would you suggest? (Anybody is welcome to suggest whatever reduction percentages that you guys think reasonable as well.)
2) Subsidiary profit and value: what does the parent company receives from the subsidiary? Is it just the dividend in case the subsidiary is set to have it?
If I'm chairman and 60% owner of the parent company, how does it affect my wealth that a subsidiary (fully owned by the parent company) is making tons of money and has a high capitalization?
Yes, the dividend will add to the parent company's income. If the subsidiary is a public company, the increase in its market value will also be reflected in the parent company's stock holding asset item in the parent company's balance sheet.
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David
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Re: CEO salary and subsidiary

Post by David »

We have just released a new patch v3.5.18 which reduces the salaries of CEO and COO by 30%.

You may download the patch from: http://www.capitalismlab.com/forum/view ... 299#p16299
kimsunwoo
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Re: CEO salary and subsidiary

Post by kimsunwoo »

David wrote:We have just released a new patch v3.5.17 which reduces the salaries of CEO and COO by 30%.

You may download the patch from: http://www.capitalismlab.com/forum/view ... 299#p16299
Thank's, already got the patch before starting the topic :-)

Regarding the CEO salary, my fear is that I don't know if it will be broken until I'm already several years into the game and wish to start a subsidiary to take control of a part of the business. If when the time comes the CEO asks for an insane amount of money... well, I hate to start the game again to set the salary a % lower. On the other hand, if I start the game setting the salary very low (like 1%) I don't know either if later it will be so low it feels like a cheat. That's the disadvantage of not knowing how the formula works and not being able to tweak it in-game.

Real CEOs do not earn more than 8-15 million in companies with profits over 1 billion dollars. However I have the feeling that in capitalism lab, no matter how low we set the salary they go crazy on their salary demand for a company that is much smaller than real life Apple or Microsoft.
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David
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Re: CEO salary and subsidiary

Post by David »

Actually I made a typo in the above post. It should be the version 3.5.18 that has the reductions of the CEO and COO salaries. (I have corrected it now.) You may download it and give it a try.

FYI, while the full details of the formula are too complicated to be listed here, here is the code pertaining to the effect of company's profit on the amount of the expected salary by an executive:

if( companyProfit > 0 )
expectedSalary += companyProfit / 10;
kimsunwoo
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Re: CEO salary and subsidiary

Post by kimsunwoo »

David wrote:Actually I made a typo in the above post. It should be the version 3.5.18 that has the reductions of the CEO and COO salaries. (I have corrected it now.) You may download it and give it a try.

FYI, while the full details of the formula are too complicated to be listed here, here is the code pertaining to the effect of company's profit on the amount of the expected salary by an executive:

if( companyProfit > 0 )
expectedSalary += companyProfit / 10;
Thanks for leting me know the code.
Do patches affect saved games or only new games?
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David
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Re: CEO salary and subsidiary

Post by David »

Do patches affect saved games or only new games?
It should affect saved games as well.
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Re: CEO salary and subsidiary

Post by kimsunwoo »

David wrote:
Do patches affect saved games or only new games?
It should affect saved games as well.
I'm playing now with patch 3.5.17, with salaries at 15% and seems realistic for now.
My annual profit is 700M and the COO earns 3M after his last rise.
My subsidiaries are quite flat in profit (they provide only R&D and oil) and their CEO's are in 500.000-1M $


Two suggestions for subsidiary DLC:

1) Can you actually buy land plots with your subsidiaries? This one is quite important as I want to set up a real state subsidiary that buys land and develope cities. However, it seems that only your main corporation can buy land. Anyway to solve or go around this?

2) You should get a warning before a subsidiary goes bankrupt, or at least be given the oportunity to inject money when the message pops up. It happened to me that my R&D subsidiary went bankrupt and I could not inject money to keep it operative. It was 100% owned.
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David
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Re: CEO salary and subsidiary

Post by David »

2) You should get a warning before a subsidiary goes bankrupt, or at least be given the oportunity to inject money when the message pops up. It happened to me that my R&D subsidiary went bankrupt and I could not inject money to keep it operative. It was 100% owned.
I ran a test game and made my subsidiary out of cash. I did get a popup window allowing me to take actions to prevent the subsidiary from going bankrupt. Please see the attached screen. Could you try again and see if you will see the same window?
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kimsunwoo
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Re: CEO salary and subsidiary

Post by kimsunwoo »

David wrote:
2) You should get a warning before a subsidiary goes bankrupt, or at least be given the oportunity to inject money when the message pops up. It happened to me that my R&D subsidiary went bankrupt and I could not inject money to keep it operative. It was 100% owned.
I ran a test game and made my subsidiary out of cash. I did get a popup window allowing me to take actions to prevent the subsidiary from going bankrupt. Please see the attached screen. Could you try again and see if you will see the same window?
That's the message I reffer to. The only two options are "declare bankrupt" or "close down firms". However, what I'd want to do in that case is to inject money from the main corporation. Otherwise I'm forced to check from time to time how low is the cash in the subsidiary to inject from time to time.
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