TCS Boss Refused Pay to Help Firm
TCS Enterprises Inc. President Tom Stickel disclosed that, for the last 15 months, he has forfeited his $156,000 annual salary to help conserve his company’s resources.
The disclosures were made in 10-Q and 10-K statements filed with the Securities and Exchange Commission that detailed TCS’ net loss of $42,000 on $995,000 in revenue for the first quarter ended Jan. 31 and TCS’ $210,000 net income on $3.6 million in revenues for the fiscal year ended Oct. 31.
Stickel’s forfeiture of his $156,000 salary during the fiscal year helped make TCS’ $210,000 full-year profit possible, the documents showed. TCS posted the $42,000 first-quarter loss despite Stickel forgoing $39,000 in paychecks in the quarter.
In an interview, Stickel said he probably will continue to forfeit his salary through the end of the current fiscal year or until TCS profits rise to what he says are acceptable levels.
“As the company’s largest single shareholder, I have a responsibility to the company in its infancy to make the commitments necessary to its success. Sometimes, that hits on my own personal bottom line,” Stickel said.
Stickel said he owns more than 1 million shares of the 2.4 million TCS shares outstanding, more than 40%. However, Stickel said he has been a net seller of TCS shares over the past year. TCS stock began trading publicly in April, 1985.
Despite the salary forfeiture and the first-quarter loss equivalent to 1 cent per share, Stickel said TCS is liquid. He predicted a second-quarter profit thanks in part to income earned as a joint-venture partner with Sunland Housing Group in a residential development in Riverside.
TCS’ first-quarter loss compared with net income of $41,000 on $746,000 revenues over the same three months a year previous. The fiscal 1986 profit, equal to 7 cents per share, compared with a net loss of $454,000 or 22 cents per share on revenues of $2.7 million in 1985.
