You kinda forgot federal payroll tax. $240,000 puts Keith in a 33% tax bracket ($79,200), and Norm is in a 28% tax bracket ($50,400). The differences between their prior salaries and the current ones could easily account for a $93000 payroll tax increase.
Perhaps rather than a brief look at the filings, you should look more closely. The rent for the house in Beijing, was paid in shares, as are most of their major transactions.
Without generating a tremendous volume of buyers as well as an increase in share price, those EBIG shares are worthless. So, whoever has agreed to be compensated in shares must believe that EBIG is going to be big. Otherwise, they're all doing charity work.
For what it's worth, my father and a partner started a lumber and hardware business in the late 1950's. Unbeknownst to me as a kid, I was a shareholder. My mother was a shareholder, and my two brothers were shareholders. Interestingly, my father told me that my mother held the most shares because my father she would outlive him, and just wanted to ensure her power so that his voting rights would transfer to her and she'd have control of the family's half. It didn't turn out that way, but that's how it was structured. She owned 46% of the company's shares. He owned 1% but had all the voting rights, and my brothers and I each owned 1%. Quite a legitimate successful business that sold for good money in the late 80's (mostly because of the value from the real estate of the lumber yard and the various stores). My mother received a small salary, was on the board of directors, and that meant she had to sign the odd form. That's the system. It's legal.
Just like a home-office is tax deductible, the home(s) of a CEO have tax breaks if the home is used for conducting any business, or business entertainment. If you use your personal car for business, there are tax deductions for that too. None of this means there's anything untoward going on.
As for the interest, getting 5x today's rate is not exactly winning the lottery. It's a great return if you're dealing with a bank and it's guaranteed, but a penny stock sure doesn't offer a guarantee like that... hence the high rate. Furthermore, as far as I can tell they paid around $7000 in interest in the last quarter. Not exactly the kind of thing that's going to make or break them.
