Kana Software, the Menlo Park supplier of customer-service software whose auditor has raised substantial doubt about (its) ability to continue as a going concern, says it decided not to give its chief executive, Michael Fields, a raise over the last two years. Instead it starting paying his rent, according to the company proxy file today.
Fields, who became chief executive in 2005, was paid $360,000 in salary in each of the last three years. In June 2007, the company decided to also pay his monthly housing costs in lieu of a pay raise, which amounted to $25,687 that year. Some observers might look at that as a 7 percent raise. In 2008, paying for Fields housing cost the company $64,784, or about $5,400 a month. Combined with his salary and compared to the figure the year before, those same observers might conclude Fields got a 10 percent raise last year.
The company said itself in its most recent annual 10-K filing that “if our revenues do not improve and we are unable to reduce operating expenses sufficiently and we do not obtain additional financing, we may become unable to pay our operating expenses on a timely basis due to a lack of sufficient liquidity.”
The company ended its 2009 first quarter on March 31 with $2.5 million in cash, down from $7 million at the end of December.