What’s the legal cannabis industry worth?
Posted On August 5, 2021
Business Insider article A cannabis company called Legal Marijuana has a new CEO.
The company was founded in 2018, and the board consists of people who worked at the cannabis industry giants, including a former cannabis executive.
Now the company is working to establish itself as an industry leader in the cannabis space, and one of the main reasons is the company’s new CEO, who will be paid $1 million annually, according to Business Insider.
This salary is significantly more than the $600,000 the company was asking for in its initial offer.
The $1.5 million salary is the first time a cannabis company has been paid that much, according with Business Insider, and was based on the company already being profitable.
While the company has only three employees, it has a total valuation of over $2 billion, according Business Insider:The company’s chief financial officer, Andrew Schleicher, who is also the company chief financial architect, said that Legal Marijuana had no other compensation.
Schleichers is the former head of research and analytics for the cannabis business company, which was sold to Green Man Cannabis in 2018 for $1 billion.
Schleick has a background in finance and analytics, according to Business Insider.
The $1-million salary was made available on July 6, 2021, the day before the company announced it was planning to sell itself to Greenman for $2.4 billion.
“We were very excited when we received our initial offer from Green Man.
The offer was a big step up from our initial valuation,” Schleid told Business Insider on Thursday.
At the time, Schleice said he was “pleased to be a part of the Legal Marijuana family.”
“The board of directors of Legal Marijuana, led by Andrew Schlesicher is thrilled to announce our 2017 revenue of $2,094,000.
This is the highest number of sales we have ever reported.
We are looking forward to building on our existing growth momentum and continue to improve our brand as we move into 2019,” Schlesich said in a statement.
Despite the fact that Schleis is an experienced executive, his compensation is still very low compared to the average cannabis executive, which can cost $3.2 million, according of Business Insiders.
“A salary like that is very much an industry average,” BusinessInsider’s Aaron Zelin wrote in an article about the pay scale of cannabis CEOs.
According to Zelin, the average CEO at a cannabis business is making $3 million per year, and Schlees salary is $1,500,000 more than that.
Legal Marijuana was also looking to raise $2 million to $3,000,000 through a Series A round of financing, but has not raised that much.