5 Top-Paid CEOs at Unprofitable Companies

Their business lost money, but they still made millions

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#4: Michael Smerklo

395219 300 5 Top Paid CEOs at Unprofitable CompaniesCompany: ServiceSource
Compensation: $14.4 million
Company Net Income: -$43 million
Stock Return: -62.7%

At first glance, it almost seems like we should cut ServiceSource International (SREV) some slack. The service revenue management company has only been public since April of 2011 — making it a relatively new kid on the block — while, last year, it did report record revenue that represented growth of 19% year-over-year.

But the bottom line is that … well … the bottom line matters. And unfortunately, that was anything but pretty. ServiceSource ended the year $43 million in the red — a loss of 58 cents per share compared with a profit the year before.

That translated to a stock slide of 63%. Meanwhile, Smerklo took home over $14 million.

The good news: Smerklo and ServiceSource have been back on track this year. The stock is up an eye-popping 85% year-to-date. Still, that rocketing climb has essentially put the stock back at ground zero. It went public at $10 per share and, after a rollercoaster ride, is trading for $10.83.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-top-paid-ceos-at-unprofitable-companies/.

©2014 InvestorPlace Media, LLC

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