Bitcoin Shop says that its managements have agreed to waive their salaries for the next 6 months in an effort to reduce costs and preserve shareholder value.
Total salary expenses will be reduced from an annual rate of $609,000 to $33,750 over the 6 months. Said CEO Charles Allen:
“Actions like this illustrate the dedication of our team to build and launch our new platform without further shareholder dilution. This is a first step in an effort to reduce our fixed costs while we continue the development of our new website which we plan to launch at www.btcs.com. I encourage those interested in signing up for beta to do so at http://beta.btcs.com.”
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With “shareholder dilution”, Allen was referring to the current practice of paying employees with shares in the company.
The company supports e-commerce conducted entirely in bitcoin and is the only publicly traded Bitcoin-branded company in North America.
In addition, all officers voluntarily agreed to cancel their employment contracts: “The Board of Directors and our officers fully agreed that senior management should be measured by their accomplishments and should not be entitled to their current position through a contract.” Management will lead by example, as new recruited talent will not have employment contracts either.
Two days after this announcement, the company said that current CEO Charles Allen has been appointed as Executive Chairman of the Board of Directors.