The initial management team depends on the founders themselves, with significant engineering resources employed by Starmile, and based in Shuzhou, China. As of May 1, 2000, Staryoo.com has 28 full-time employees, including a CEO, COO, CTO, and two vice-managers responsible for Information, Marketing, and Advertising in China.
6.1 Organizational Structure
Recognizing the extenuating circumstances that will arise due to a U.S. company developing a product for the Chinese markets, the overall management structure must remain flexible. In the short term, the current management team will be responsible for securing the first round of venture capital and overseeing the alpha and beta testing of the trading platform. Starmile will maintain technical development with a transfer of this engineering talent to Staryoo.com planned for May, 2000. It is planned that a Chief Financial Officer (CFO) will be hired by August, 2000.
6.2 Management Team
Mr. Cio, Quigdo, former vice president/CTO of Zheijiang ICBC (the largest commercial bank in China) has nearly 20 years of experience with the development of financial software and hardware. Mr. Cio is an expert on the application of computer technology in the financial industry and plays a crucial role in the advancement technology in the China banking industry, including China’s first debit and credit cards, and the first minicomputer used for accounting systems in banking and computerized deposit systems.
Mr. Smith, John, CEO and founder of Starmile, and president of DoubleTime Electronics, Inc., is a noted entrepreneur and a pioneer in the development of technology as applied to the banking industry in China. Mr. Smith started Starmile in 1994 with just $6,000 and four employees. The company now has 320 employees and sales of $13.7 million annually. DoubleTime Electronics, Inc. was started in 1993 and has over $10 million in assets. Mr. Smith worked as head of the software development department in Zhejiang ICBC for ten years while developing banking accounting, MIS, and document processing systems. Mr. Smith has published several papers and articles on Management and New Technology Applications in the Financial Industry.
Mr. Tsu, Ben, vice president and Chief Technology Officer in Shuzhou for Starmile is responsible for all major technological research and development for the company. Mr. Tsu has been directly responsible for the development of products generating over $20 million in revenue. Mr. Tsu was a key developer of the first and second versions of the first China Securities Brokerage Firm Trading Systems. Mr. Tsu was graduated with honors from Beijing University with a Bachelors of Science in Electrical Engineering in 1992.
Mr. John, Don, vice president of Starmile and CEO at Staryoo.com, is responsible for technology and business development. Mr. John worked as a software engineer and engineering manager in the Eastern Business Tech Corporation for two years, MIS and Business Development manager at BP Tech Corporation for three years, and Engineering Manager at DoubleTree Electronics, Inc. for one year. Mr. John received his Bachelors of Engineering in the Application of Math and Computer Science, his Masters of Engineering in MIS and a Ph.D. in Finance from Shanghai University . Mr. John also holds a Master of Science in Engineering Management from Gonzaga University in 1993.
Mr. Grey, Ronald, COO of Staryoo.com and CEO/founder of Pacific Food, Inc., joined Staryoo.com in January, 2000. Mr. Grey will be responsible for overseeing the development and deployment of Staryoo.com’s trading platform both in China and the United States. From 1993 to 2000, Mr. Grey was CEO of Pacific Food, Inc., an entertainment/food service company located in Orlando, FL, and was responsible for all business development, accounting and human resources. From 1983 through 1993, Mr. Grey worked as Product Engineering Supervisor and Product Engineer in Product Development for LSI and Intel. Mr. Grey graduated Cum Laude from the University of Delaware with a Bachelors of Science in Electrical Engineering in 1983.
6.3 Management Team Gaps
Staryoo.com currently is searching for an experienced Chief Technology Officer from the United States. The Chief Technology Officer position will be hired by June, 2000 in anticipation of providing brokerages with a secure virtual private network through which their clients will communicate. Starmile, through the initial alpha and beta testing of the platform, will provide significant marketing and technology expertise. A Chief Financial Officer will be hired by August, 2000 to oversee the company’s budgets. The company will hire engineering, customer service, accounting, and clerical staff as required to achieve the timelines presented elsewhere in this plan.
Our success will depend on our ability to hire and retain additional qualified marketing, industry, technical, and financial personnel. Qualified personnel are in high demand. We face considerable competition from other service firms and other Internet and online service companies for these personnel, many of which have significantly greater resources than we have. In order for Staryoo.com to attract talented and qualified employees, we must allow our employees to enjoy equity positions in the company. A stock option plan is intended to assist in securing and retaining key employees, directors, and consultants by allowing them to participate in our ownership and growth through the grant of incentive and non-qualified options. By offering sufficient stock options and stock grants to current and prospective employees, we will ensure their loyalty and active participation towards the success of Staryoo.com.
Use of contracts for various services via B2B Internet companies may be necessary to expedite the infrastructure of various departments such as human resources, administrative personnel, and finance.
Advisors to the Board of Directors will be added to our team as the opportunities and individuals present themselves.
6.4 Personnel Plan
The following tables summarize our personnel expenditures for the first three years, with compensation increasing from approximately $534,000 the first year to $2.8 million in the third. We believe this plan is an equitable compromise between fairness and expedience, and meets the commitment of our business plan. Since Staryoo.com is being developed in China for the Chinese markets, initially, a majority of the labor will be personnel from China. The Personnel table is separated into staffing for both China and America, with salaries commensurate with the location. Staryoo.com will gain a tremendous advantage by using the relatively inexpensive labor pool available in China. A typical software engineer in China receives a salary of approximately $500 per month versus the American counterpart at approximately $5,000 per month. The detailed monthly personnel plan for the first year is included in the appendix.
The table below is a breakdown of the staffing growth anticipated in each department (US/CN):
|Sales and Marketing||0/6||2/12||8/20|
|Year 1||Year 2||Year 3|
|CEO – USA||$93,950||$105,000||$135,000|
|COO – USA||$87,700||$95,000||$120,000|
|Vice-Manager Mktg & Adv. – China||$35,000||$55,000||$65,000|
|CTO – China||$40,000||$60,000||$75,000|
|CFO – China||$42,000||$55,000||$70,000|
|Engineering Staff – USA||$44,000||$288,000||$595,000|
|Engineering Staff – China||$75,000||$132,000||$180,000|
|Sales & Advertising Staff – USA||$0||$120,000||$560,000|
|Sales & Advertising Staff – China||$14,000||$57,600||$96,000|
|Customer Service Staff – USA||$0||$0||$336,000|
|Customer Service Staff – China||$9,200||$33,600||$48,000|
|Miscellaneous Staff – USA||$17,500||$78,000||$135,000|
|Miscellaneous Staff – China||$16,800||$48,000||$75,000|