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Owner Employee Compensation is Not Free Cash Flow

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  • Sack Elmaleh Michael

    (Columbia Union College)

Abstract

Owner employees require reasonable compensation for services provided to their companies. It is a major conceptual error to treat such compensation as free cash flow in the calculation of economic value.

Suggested Citation

  • Sack Elmaleh Michael, 2008. "Owner Employee Compensation is Not Free Cash Flow," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 3(1), pages 1-4, September.
  • Handle: RePEc:bpj:jbvela:v:3:y:2008:i:1:n:8
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