Herms William Interview 9 24 12 - California Resources Agency

1 So the idea was that we would
2 provide -- they would provide a proposal
3 saying here's what I want to do. We would
4 evaluate that. If we thought it had merit, we
5 would provide the capital. They would do
6 whatever it is they're going to do, and their
7 revenues would increase. That would flow back
8 to headquarters. Half of that revenue, the
9 discussion was, would flow back to the
10 district superintendant as an incentive for
11 being successful. And the other half would
12 flow into headquarters where it would go into
13 SPRF where that would be completely divvied up
14 amongst all the rest of the units, because
15 some of the units have much more opportunity
16 to be entrepreneurial and to make more money
17 than other units.
18 And so we were looking for that
19 balance of we want to get incentive for those
20 who can make money, but we recognize those who
21 can't make money, we need to help them as
22 well, and so there was this idea of a split.
23 MR. PATTON: Okay. So a profit-
24 sharing plan.
25 MR. HERMS: Yes, yes, very much so.
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