Why is Gaga not the CEO of Haus Labs?

[Red 97,983]

The woman barely has time to release LG6 and you want to give her one another 9 to 5?

[OMonster 14,675]

Gaga is the Chairwoman - the CEOs boss.  

CEO, in this case, = the day-to-day boss. 

Chairwoman = the owner, the founder, the boss of the day-to-day boss. 

Gaga is majority shareholder and owns the company. She is in charge  from the top, the vision, the broader company - not the day-to-day running, which she obviously will have no time for or the knowledge to do well. 

Since the company has investors, Gaga (and her business) will not own 100% of HL. In return for investment, Gaga will have given HL equity (%) away. It is likely that Gaga holds a 60% share, and investors / Sarah / other stakeholders share 40% between them. 

This would mean that 60% of HL profit goes to Gaga. 

But it's important to consider that 'Gaga', in this case, doesn't = only Gaga. 

'Gaga' - the business, the shareholder, the company - probably has a lot of people involved. 

Example: Joe owns her touring company and her publishing company. So Joe will also be an indirect - through Gaga's share - owner of HL, too.

Gaga will never act as an individual in business. Everything will be processed through her business for taxation purposes. 

[bluemonkey 639]

Do people really think Gaga is superhuman? I’d be worried if she’s CEO.

[Madling 1,981]

16 hours ago, OMonster said:

Gaga is the Chairwoman - the CEOs boss.  

CEO, in this case, = the day-to-day boss. 

Chairwoman = the owner, the founder, the boss of the day-to-day boss. 

Gaga is majority shareholder and owns the company. She is in charge  from the top, the vision, the broader company - not the day-to-day running, which she obviously will have no time for or the knowledge to do well. 

Since the company has investors, Gaga (and her business) will not own 100% of HL. In return for investment, Gaga will have given HL equity (%) away. It is likely that Gaga holds a 60% share, and investors / Sarah / other stakeholders share 40% between them. 

This would mean that 60% of HL profit goes to Gaga. 

But it's important to consider that 'Gaga', in this case, doesn't = only Gaga. 

'Gaga' - the business, the shareholder, the company - probably has a lot of people involved. 

Example: Joe owns her touring company and her publishing company. So Joe will also be an indirect - through Gaga's share - owner of HL, too.

Gaga will never act as an individual in business. Everything will be processed through her business for taxation purposes. 

Her dad owns her touring and publishing company? Why? Tax reasons? 

[Diamond heart99 5,262]

17 hours ago, OMonster said:

Gaga is the Chairwoman - the CEOs boss.  

CEO, in this case, = the day-to-day boss. 

Chairwoman = the owner, the founder, the boss of the day-to-day boss. 

Gaga is majority shareholder and owns the company. She is in charge  from the top, the vision, the broader company - not the day-to-day running, which she obviously will have no time for or the knowledge to do well. 

Since the company has investors, Gaga (and her business) will not own 100% of HL. In return for investment, Gaga will have given HL equity (%) away. It is likely that Gaga holds a 60% share, and investors / Sarah / other stakeholders share 40% between them. 

This would mean that 60% of HL profit goes to Gaga. 

But it's important to consider that 'Gaga', in this case, doesn't = only Gaga. 

'Gaga' - the business, the shareholder, the company - probably has a lot of people involved. 

Example: Joe owns her touring company and her publishing company. So Joe will also be an indirect - through Gaga's share - owner of HL, too.

Gaga will never act as an individual in business. Everything will be processed through her business for taxation purposes. 

That’s not entirely accurate.

LG would hold the stock in Haus Labs and her other companies as an individual. You do not hold stock under your corporation as it not recommended by tax advisors or legal advisors. 

Joe doesn’t “own” her publishing and touring company, he’s just one of the officers.  Like he is on the company she uses for acting/producing. As these are more of pass throughs - I would bet she did not grant Joe any stock, and is the sole share holder. 

The above have nothing to do with Haus Labs as it is an entirely separate entity, and does not give Joe any part of HL unless she granted him equity, which she very well could have done.

 

[AdmistTheLight 2,269]

24 minutes ago, Ktaylor99 said:

That’s not entirely accurate.

LG would hold the stock in Haus Labs and her other companies as an individual. You do not hold stock under your corporation as it not recommended by tax advisors or legal advisors. 

Joe doesn’t “own” her publishing and touring company, he’s just one of the officers.  Like he is on the company she uses for acting/producing. As these are more of pass throughs - I would bet she did not grant Joe any stock, and is the sole share holder. 

The above have nothing to do with Haus Labs as it is an entirely separate entity, and does not give Joe any part of HL unless she granted him equity, which she very well could have done.

 

 

1 hour ago, Madling said:

Her dad owns her touring and publishing company? Why? Tax reasons? 

During Howard Stern interview for ARTPOP, Gaga said she is bad with money and bussiness so all her money goes through Joe. It means that any bussiness that have her name on it need to run by her dad as a way for her to have control of what people do to her money ,without directly controlling it. She said tho that Joe does not have any stock in her company. Don't know if that still stay true.

[gagaschickens 4]

18 hours ago, Sneaky Oliver said:

Don't give her ideas otherwise we're never getting LG6 for real  jk

but its never coming anyways

[mmmmonster 137]

The role of CEO is very involved and it's a full-time job.  She doesn't have the time / experience to take it on, and their VC partner is likely the one who brought the professional team onboard from other beauty companies to lend their expertise to their business as this woman is an expert in investing in this field and knows a lot of people.  The VC partner probably owns a significant chunk of the business - VC doesn't take a super minority position in start-ups of this size (v. buying a smaller percentage of a more mature start-up) - but I assume LG is still the biggest member/shareholder (depends on whether the company was set up as a limited liability company, which is more common in these situations, or a corporation).  She definitely is not the direct owner, i.e., her name is not listed as a direct partner/shareholder on the signature line; it's likely done through at least one, if not a whole chain of, Cayman (or some other tax haven) LLCs that are ultimately owned by her (or Joe).   

TL;DR: the money will ultimately flow up to her through some maze of a set-up but likely she/no one is listed as at owner for tax/legal reasons.  She can't take on the CEO role due to time and expertise constraints.

[Ziggy 11,787]

21 hours ago, OMonster said:

Gaga is the Chairwoman - the CEOs boss.  

CEO, in this case, = the day-to-day boss. 

Chairwoman = the owner, the founder, the boss of the day-to-day boss. 

Gaga is majority shareholder and owns the company. She is in charge  from the top, the vision, the broader company - not the day-to-day running, which she obviously will have no time for or the knowledge to do well. 

Since the company has investors, Gaga (and her business) will not own 100% of HL. In return for investment, Gaga will have given HL equity (%) away. It is likely that Gaga holds a 60% share, and investors / Sarah / other stakeholders share 40% between them. 

This would mean that 60% of HL profit goes to Gaga. 

But it's important to consider that 'Gaga', in this case, doesn't = only Gaga. 

'Gaga' - the business, the shareholder, the company - probably has a lot of people involved. 

Example: Joe owns her touring company and her publishing company. So Joe will also be an indirect - through Gaga's share - owner of HL, too.

Gaga will never act as an individual in business. Everything will be processed through her business for taxation purposes. 

To clear things up for people (great breakdown btw): The board of a corporation is made up of its top investors with the chair being elected by the rest of the board. However, those with more shares get more votes. The board then hires a CEO who is answerable to the Board and ultimately the Board Chair (Gaga).

I actually imagine that HL is a fairly complicated business model since, like you said, Gaga's stake goes through Gaga the business which also employs several other members of the board. It speaks to how much she must really trust her team because it could very easily poison some waters.

[Ziggy 11,787]

51 minutes ago, mmmmonster said:

(depends on whether the company was set up as a limited liability company, which is more common in these situations, or a corporation)

I was actually wondering this part. Do we know what it's listed as? I suppose we could look it up but *hassle*.

 

It's also funny that people think this is just a cash grab for her without really understanding the business logistics behind this. She's very clearly hyper-involved where she can be.

[RAMROD 109,365]

As others have mentioned, founder doesn't always means want to be a CEO, but they have the power to point someone more eligible to hold the business part of things. As mentioned in his profile, he had experience with these fields. Gaga is definitely on the Board as well. But she may have different business there and likely have a final say in every decisions taken.

[Mr S 8,672]

Fans: why is she not CEO

Also fans: why is she not working on LG6

[Diamond heart99 5,262]

6 hours ago, AdmistTheLight said:

 

During Howard Stern interview for ARTPOP, Gaga said she is bad with money and bussiness so all her money goes through Joe. It means that any bussiness that have her name on it need to run by her dad as a way for her to have control of what people do to her money ,without directly controlling it. She said tho that Joe does not have any stock in her company. Don't know if that still stay true.

Yes that is why Joe is an officer on her her companies. Because that way he can sign documents and control the cash flow. 

Again as far as HL and her other companies, I don’t know why everyone keeps saying she’s not part of it. That’s literally how a company works, but having the company protects LG as an individual unless there is a reason to pierce the corporate veil.

Stock (equity) is issued to the individual. Especially in the case of HL, which could some day go public.

Her other companies function as mostly pass throughs - for example her publishing monies get paid (with no taxes taken out as it’s a Corp) to Haus Of Gaga Publishing (I believe that’s name if I remember correctly) then her business manager can transfer the monies out of that bank account to her personal one. That’s how to works for her acting/producing entities as well. 

 

[mmmmonster 137]

10 hours ago, Ziggy said:

I was actually wondering this part. Do we know what it's listed as? I suppose we could look it up but *hassle*.

 

It's also funny that people think this is just a cash grab for her without really understanding the business logistics behind this. She's very clearly hyper-involved where she can be.

Nope, only the parties involved will know this information (investors and their lawyers/accountants) unless they decide to go public one day and prepare SEC filings to disclose additional information.  I've actually always been curious towards her business set-up and whether it's set up in the most efficient way.   Big celebrities often hire small firms to handle their day-to-day business dealings and sometimes those companies use cookie-cutter set-ups they've used for other artists without realizing there are more efficient ways to structure their businesses.  I have a friend who used to work at one of those companies and told me how a certain A-lister lost MILLIONS for years because of an ineffective set-up (he left the company at some point so no idea how that situation played out in the end), and I just hope that her people know what they're doing. 

 

[Ziggy 11,787]

12 hours ago, mmmmonster said:

Nope, only the parties involved will know this information (investors and their lawyers/accountants) unless they decide to go public one day and prepare SEC filings to disclose additional information.  I've actually always been curious towards her business set-up and whether it's set up in the most efficient way.   Big celebrities often hire small firms to handle their day-to-day business dealings and sometimes those companies use cookie-cutter set-ups they've used for other artists without realizing there are more efficient ways to structure their businesses.  I have a friend who used to work at one of those companies and told me how a certain A-lister lost MILLIONS for years because of an ineffective set-up (he left the company at some point so no idea how that situation played out in the end), and I just hope that her people know what they're doing. 

 

I have an inkling that that might have been a part of the Troy situation and that now she keeps a much more watchful eye on her finances with Joe. I’m curious as well since hers would be incredibly complicated due quite simply to how much she’s done in different areas. I could see someone like katy Perry having that cookie cutter model because her business dealings are somewhat limited (or were until the shoe thing), but Gaga has a really complex business since she has so many different things she’s created throughout her career from the perfumes to music to acting to the soundtrack to touring (to insuring those because of her condition) to residencies (enigma, J&P, roseland) to now HL and the BTW foundation. She would absolutely stand to lose a lot from a cookie cutter model lol