| Wednesday, August 15, 2012 - 05:13 pm |
I've been around for a few months now. I've reading the forums for advice and used some of it. I've been changing strategies left and right on how to improve my country, and I've seen very little improvement. If someone could tell me a good strategy that would help me out, I would greatly appreciate it. Also, I'm still confused on the IPO corps. How do you make money, and are they even worth it?
| Wednesday, August 15, 2012 - 06:32 pm |
Anywho IPOing seems to be more tempting then practical for a lot of people, but there are reasons to do it. If you can dillute your ownership to less then a CEO's ownership then they have to pay you country resource payments, which will most likely be more then what you get paid by other means (not neccessarily but more than likely). Also if the majority share holder can move to under 25% the corp will go truly public and you can upgrade upto 250 instead of 200. If a corp is public and a CEO can wrestle it away from you they can move it and you can collect on it while it's not even in your country. Finally time value of money, if you need money now you can sell off pieces of the corp too get useable capital more quickly. Which can be used to defraud investment funds. But get the price going up and selling then bring the price down nd buy, etc. I don't do that but could be a reason.
In reality though, when you sell shares of the corp you are giving away monthly profit for a one time paycheck. Typically not worth it, and a mechanism most people don't understand. Yet I still suggest that you IPO your corps when you can, sell like 1% because then options are available to you whenever you would want to use them
| Thursday, August 16, 2012 - 04:21 am |
"The Grand State of Victoria Do" on Golden Rainbow.
What should the health index and salaries be? I think I have everything else sorted out, but there are a lot of different ideas on what these two should be. I listed my country above.
Thanks for the help,
| Thursday, August 16, 2012 - 06:02 am |
given your other indexes, hmm well it works like this its better to have an index of ed=190, health=160 then ed=220 health=130. I recommend you close this gap a little more. Your education is similar to mine but I keep my health in the area of 170-180. That is 2x the hospitals recommended. What I do is take transportation and health and multiply by 2.1 then let it fall until it starts to affect general welfare. Then redo it, so it isn't constant maintenance. But it's just a suggestion your indexes are great though.
As for salaries, their are a lot of strategies you can do. First you don't want CEO's that pay salaries less than 300, you want CEO's that pay as much as possible, as country resources are linked to revenues not profit, in addition the higher the salaries pay higher income taxes. With that said one of salary strategies which I recommend to you is: Let a country go truly public and raise the salaries to a level that forces the corp to break even. ~1100-1300. This will increase incomes in taxes, healthcare contribution, education contribution, pension contribution, and investment fund contribution. What makes this even better is since you have to dillute your ownership your divedend payments are going to be small anways and so the actual profitability of the corp is irrevelant anyways, well kind of irrevelant with the exception of how high you can boost those salaries.
But to make that answer simple you are on the right track with 300. I can go more indepth on how to get CEO's that are low salaries out of your country or more reasons to keep salaries high if you want, and if that was confusing I can re-explain it in a simpler way. if it's a state corp though you shouldn't go too high, as if they lose money then your country pays with high automatic transer payments.
| Thursday, August 16, 2012 - 06:54 am |
Most of the corporations in my country are my enterprise's corporations. I have raised the salary in my enterprise corporations to 1300. As for the public corporations, what about the public offering of more shares? Is that necessary, or until the major share holder has less than 25%? If it's country controlled, do I still raise the salary level to 1300?
Thanks again for the help,
| Thursday, August 16, 2012 - 08:45 am |
You have to offer shares out in order to get the ownership of the largest owner below 25%. Investment funds can never be majority shareholders so if they buy shares then it is fine all the way up to 40%. So selling more past 25% can be dangerous, if too many shares are available on the market then they can steal the corp away from you. But since the corp won't be profitable with super high salaries you can make some money off of them before their market value drops (<-Useless number). But you do that at your own risk if you lose control then you will have to nationalize the corp to get it back and it comes with a fee. The higher the MV the higher the fee. Of course you don't have to do anything of this. <- this is all an edit so below gives an alternative of ignoring truly public or using your CEO. It's just my prefered method.
Only boost country controlled corporations to high levels, but you are going to have to watch them, you still want them to break even. If you go too high that won't work.
This strategy is a little complicated but you have an enterprise which means you are probably a premium member meaning you can get more countries. So what you could do, is have 2 investment funds from 2 other countries buy 40% of each corp a piece. Have the country hold 20% once the countries ownership hits 24.99% (or less) it can be upgraded to 250 (instead of 200 for state, or 225 for enterprise) for quality and efficiency. Then you can raise salaries to super high levels. But I'd start slowly if they are truly public make sure they are still making money at 900, 1000, 1050, 1100 etc. If they are losing money it probably won't help that much. Since you don't have 3 countries atm you can't exactly do this, I recommend getting 3 countries so you can do this. But since you are a single country atm, start even lower around 400, then 450, etc. You should be fine upto 700 or so but that's plenty to give you good incomes, and indexes.
So you have some of your own ceo corps, but mostly LULI. LULI is a big enterprise and it's paying 305. This is high enough so the LULI enterprise is helping your country. If you fall into employment problems in the future you are going to want your salaries above this marker, say 310 or so. If you are using your CEO the high salaries don't work very good, they will start losing money a lot faster. Country resource payments are based on your revenue and increased salaries>>increase corporate welfare>>increase production>>Increase revenue>>higher costs! So when pricing your CEO corps you are going to want to make it both profitable for your country and enterprise. I recommend 375-475 for this. However if you are not making a profit lower it still.
So state corps around 300. your CEO 310/375-475, your country controlled publics 700ish. Your truly public country controlled 1100ish. But with an enterprise you might just want your enterprise to buy out all your corps. Its a strategy most prefer, but enterprises suck and I've been working on even getting my own CEO corps out of my countries. Its really up to you though lots of things work. You can also have your country hold 24.99 your ceo hold 24.98 a second country hold 40 then you only need to sell 10% to random investment funds then there is no fear of a hostile takeover. Another suggestion. Anyone good luck. And it's a pleasure to help, I am looking forward to more competition on golden rainbow I hope I'm clear. You do have a couple changes to make.
| Thursday, August 16, 2012 - 09:03 am |
oh um but if your ceo is in other countries you are helping them a lot more than you're helping yourself with 475 salaries, I recommend 300 if in a country not your own slightly higher if its a high welfare country slightly lower if it's a low welfare country (best to avoid those)