Executive compensation

Q:  We would like to have clarification of the executive compensation policy. we have been charged with inflation adjusted compensation for a plant that is under construction. It would seem that a plant under construction. would not have executives working it? Shouldn't executive compensation be charged only during quarters that the plant s operational.

A:  Top executives for a plant need to be aboard starting with the time the construction contract is let.  They are charged with supervision of construction, organizing things for future operations, hiring and training employees, etc.  So executive compensation is part of the cost of opening a new plant.