Company Structure & Growth Plan – Board Review Document

Path to $150k Director Salaries

Strategic roadmap to increase director compensation from $80k to $150k each via Vietnam office transition to AI-powered Melbourne team

Prepared
15 February 2026
Purpose
Director Compensation Growth
Strategy
Vietnam → AI Transition
Timeline
12 Months

Executive Summary

STRATEGIC SHIFT: The directors have decided to close the Vietnam office in 2026 and transition to an AI-powered Melbourne team.
Current Director Salaries
$80k
per director
Target Director Salaries
$150k
+$70k increase
Vietnam Team Savings
$219k
annual run rate
Director Raise Cost
$210k
3 directors × $70k

The Math

Item Impact Notes
Vietnam savings +$219k/year 9 staff + overhead
Director salary increase -$210k/year 3 × $70k raise
Net cost reduction +$9k/year Fully funded by Vietnam closure
2 Melbourne hires (strategic) -$190k/year AI Ops Mgr + Sr Account Mgr
Total net investment -$181k/year Requires revenue growth to fund
Key Insight: The $150k director salaries are FULLY FUNDED by Vietnam closure with $9k surplus. The plan then invests that surplus + modest revenue growth into 2 strategic Melbourne hires who will manage AI agents rather than do manual work.

Critical Success Factors

1. Current Org Chart (with Transition Status)

Directors Layer

▼

Andy Nguyen (Director/CEO)

  • Charlie (AI PA) — Operations, email, scheduling, project management
  • Vietnam Team (via Mike Do) — ⚠ TRANSITION PLANNED
  • Strategic oversight → EVOLVING TO: AI Infrastructure Architect

Steve Nguyen (Director/Technical)

  • Tom (AI PA) — Client management, support, data maintenance
  • Development operations — ⚠ VIETNAM DEPENDENCY
  • Client technical delivery → EVOLVING TO: Client Strategy + AI Oversight

James (Director/Sales)

  • Brian (AI PA) — Sales pipeline, lead nurturing, outreach
  • New business development → UNCHANGED (core human function)

Management Layer

▼
Role Salary Status Transition Plan
Mike Do
Vietnam Ops Lead		 $2,700/mo
($32.4k/year)		 CONTRACT ENDS JUL 2026 Replacement: Charlie + Tom agents (ops) + Melbourne AI Ops Manager
Megan Volo
Digital Marketing Mgr		 $111.5k/year ✓ RETAINED Evolution: Hands-on execution → AI-assisted strategy + oversight

Vietnam Team — Transition Timeline

▼
Name Role Salary Contract End Dependency Replacement Strategy
Hank Nguyen Sr PHP Dev $3,000/mo Not specified HIGH Codex dev agents + Melbourne contractor as needed
Isaac Ngo Sr Frontend $2,400/mo Jun 2026 HIGH Codex dev agents + Figma-to-code automation
Loki Phan Full-stack $1,630/mo May 2026 MODERATE Codex dev agents (EARLIEST EXIT CANDIDATE)
Zoe Nguyen Paid Ads $2,160/mo Jul 2026 MODERATE Sammy agent + ad automation + Megan oversight
Duc Nguyen-Dinh Paid Ads (probation) $1,620/mo Not specified LOW Sammy agent (EARLY EXIT CANDIDATE)
Paul Nguyen Jr SEO $930/mo May 2026 LOW SEO execution agents (EARLIEST EXIT CANDIDATE)
Lucia Nguyen UX/UI $1,200/mo Dec 2026 MODERATE-HIGH Figma API + AI design tools + Melbourne review
Ann Nguyen Admin $1,920/mo LEAVING MAR 2026 ZERO Charlie agent (ALREADY REPLACING)
Total Vietnam Team Cost: $18,280/month = $219,360/year (including insurance + overhead)

2. Vietnam Transition Plan

Philosophy

Ethical Foundations:
  • Transparency with team (timing TBD by directors)
  • All contract end dates will be honoured, no early terminations
  • Vietnam team invited to help train AI replacements (paid work)
  • All departing staff receive strong references and fair severance
  • Selective retention option for irreplaceable individuals

Phase 1: Build & Parallel Run (Now → Month 6)

▼

Objective: Build AI agents that can match Vietnam team output, validate quality through parallel execution.

Month Agent Build Vietnam Team Role Revenue Impact
1-2 Finance Agent, Account Mgmt Agent Ann trains Finance Agent (final weeks) +$50k (upsells)
2-3 Client Onboarding Agent Mike documents SOPs, reviews agent output $0 (no change)
3-4 SEO Execution Agent Paul trains agent, runs parallel audits +$20k (content upsells)
4-5 Enhanced Sammy (Ads Agent) Zoe/Duc train, review campaign setups +$30k (ad revenue)
5-6 Content Production Agent Vietnam team reviews AI-generated content +$40k (new packages)
Phase 1 Costs
$134.5k
$25k agents + $109.5k Vietnam team
Phase 1 Revenue Impact
+$140k
From agent-driven upsells
Key Milestone (Month 6): Directors review agent quality vs human output. Decision: Proceed to Phase 2 or pause?

Phase 2: Gradual Transition (Month 6 → Month 9)

▼

Objective: AI handles primary workload, Vietnam team provides QA only. Begin natural attrition.

Month Agent Capability Vietnam Team Changes Revenue Impact
6 Dev Agent (Codex) goes live Isaac's contract ends Jun 2026 — DO NOT RENEW $0 (maintain quality)
7 QA/Testing Agent operational Hank reviews AI code, reduces hands-on dev +$15k (retention)
7 Design Agent (Figma + AI tools) Lucia focuses on brand/UX strategy only $0
7 — Mike, Zoe contracts end Jul 2026 —

Critical Decision (Month 7)

Option A: Close Vietnam Office (Recommended)
  • Mike, Zoe contracts end Jul 2026 → DO NOT RENEW
  • Hank, Lucia retained remotely until Month 9-12 (complex work only)
  • Savings start: $4,860/mo = $58k/year run rate
Phase 2 Costs
$118k
$18k agents + $53.5k Vietnam + $47.5k Melbourne hire
Phase 2 Revenue Impact
+$80k
Upsells + retention

Phase 3: Melbourne Focus (Month 9 → Month 12)

▼

Objective: Vietnam office closed, Melbourne team + AI agents handle all delivery.

Month Change Impact
9 Hank contract ends (optional extension to Month 12) Dev fully on Codex agents
9 Hire AI Operations Manager (Melbourne) Agent fleet management, QA oversight
10-12 Lucia contract ends Dec 2026 — DO NOT RENEW Design fully on AI tools + Melbourne review
12 Vietnam office fully closed Full $219k/year savings achieved
New Delivery Model (Month 12):
  1. Client request arrives
  2. Account Manager (human) scopes work
  3. AI Ops Manager (human) assigns to agents
  4. Agents execute (dev/ads/SEO/content/design)
  5. AI Ops Manager QA's output
  6. Account Manager delivers to client
Phase 3 Costs
$61.5k
$18k Vietnam remote + $39.6k AI Ops Mgr + $3.9k agents
Phase 3 Revenue Impact
+$100k
AI service revenue + full agent capacity

3. Revenue Analysis

Current Revenue Breakdown

Client Monthly Recurring % of MRR Transition Risk
MyRacehorse $15,620/mo 30% CRITICAL RETENTION
Hungry Minds $10,365/mo 20% CRITICAL RETENTION
HKA (Häcker) $8,469/mo 16% HIGH PRIORITY
AES $6,751/mo 13% HIGH PRIORITY
By Katia $5,554/mo 11% HIGH PRIORITY
Others (4 clients) $5,278/mo 10% STANDARD
Verified Monthly Recurring
$52k
$624k/year
Quarterly/Annual Clients
~$302k
annualised
Total Current Revenue
~$926k
baseline

Revenue Growth Plan (Transition-Enabled)

▼
Period Growth Drivers Revenue Impact
Month 1-6
(Phase 1)
  • Agent-driven upsells: $90k
  • Content packages: $50k
 +$140k
Month 6-9
(Phase 2)
  • Improved retention: $50k
  • Ad spend growth: $30k
 +$80k
Month 9-12
(Phase 3)
  • AI Transformation Service: $60k
  • New client acquisition: $40k
 +$100k
Year 1 Total All growth initiatives combined $1.246M (+35%)
Year 2 Target: $1.5M (+20% additional growth) through scaled AI service and continued client acquisition

4. Financial Model

Current State
$926k
Revenue
Current Costs
$653k
71% of revenue
Current Gross Profit
$273k
29% margin

Current State Breakdown

▼
Category Annual Cost % of Revenue
Director salaries $240,000 26%
Megan Volo $111,500 12%
Vietnam team $219,000 24%
AI infrastructure $2,500 <1%
People subtotal $573,000 62%
Office, tools, overheads $80,000 9%
TOTAL COSTS $653,000 71%
Gross profit $273,000 29%

Target State (Month 12, Post-Transition)

▼
Category Annual Cost % of Revenue ($1.246M) Change
Director salaries (NEW) $450,000 36% +$210k
Megan Volo $111,500 9% —
Vietnam team $0 0% -$219k
Melbourne hires (2) $190,000 15% +$190k
AI infrastructure $10,000 <1% +$7.5k
Agent operating costs $3,900 <1% +$3.9k
Agent build (amortised) $18,000 1% +$18k
People subtotal $783,400 63% +$210.4k
Office, tools, overheads $90,000 7% +$10k
TOTAL COSTS $873,400 70% +$220.4k
Gross profit $372,600 30% +$99.6k
KEY METRICS:
  • ✓ Director salaries: $450k total ($150k each) — TARGET ACHIEVED
  • ✓ Gross profit margin: 30% (improved from 29%)
  • ✓ Cost per $ revenue: $0.70 (improved from $0.71)

5. The $150k Path

Milestones: $80k → $150k Per Director

Month Director Salary Key Actions Vietnam Team Status
1
Feb 2026		 $80k • Approve transition plan
• Build Finance Agent
• Build Account Mgmt Agent 		9 staff (Ann departing)
4
May 2026		 $100k
(+$20k)		 • Hire Sr Account Manager
• Paul exits (SEO Agent ready)
• Content packages launched 		6-7 staff
Savings: $2,560-$4,190/mo
6
Jul 2026		 $100k • Agent quality review
• Isaac exits (Codex ready)
• Decision: Proceed to Phase 2? 		5-6 staff
Savings: $4,960-$6,590/mo
7
Jul 2026		 $120k
(+$20k)		 • Vietnam office CLOSED
• Mike + Zoe contracts end
• Retain Hank + Lucia remotely 		2 remote contractors
Savings: $14,070/mo = $168k/year
8
Aug 2026		 $120k • Hire AI Operations Manager
• Dev Agent (Codex) built
• AI service launched (3 pilots) 		2 remote contractors
12
Dec 2026		 $150k
(+$30k)
🎉 TARGET		 • Lucia exits
• Vietnam fully closed
• Revenue: $1.246M achieved
• 8 agents operational 		0 staff
$219k/year savings locked
Financial Summary by Quarter:
Quarter Revenue Vietnam Costs Director Salaries Gross Profit
Q1 $231k $54.75k $60k ($80k rate) $58k
Q2 $291k $43.8k $75k ($100k rate) $104k
Q3 $321k $12.6k $90k ($120k rate) $131k
Q4 $403k $6.3k $112.5k ($150k rate) $179k
TOTAL $1.246M $117.45k $337.5k $472k

6. Agent Roadmap

Priority 1: Vietnam Replacement Agents

Agent Month Build Cost Operating Cost/Year Replaces Annual Savings
Finance/Bookkeeping Agent 1 $6k $300 Ann Nguyen ($1,920/mo) $23,040
SEO Execution Agent 3 $5k $400 Paul Nguyen ($930/mo) $11,160
Enhanced Sammy — Ads Agent 5 $7k $1,200 Zoe + Duc ($3,780/mo) $45,360
Dev Agent — Codex 7 $12k $800 Hank + Isaac + Loki ($7,030/mo) $84,360
Design Agent — Figma + AI 9 $8k $600 Lucia Nguyen ($1,200/mo) $14,400

Priority 2: Revenue-Enabling Agents

Agent Month Build Cost Operating Cost/Year Revenue Impact
Account Management Agent 1 $8k $500 +$225k/year (churn reduction + upsells)
Content Production Agent 5 $7k $1,200 +$74k/year (new content packages)

Total Agent Investment

Total Build Cost
$72k
One-time investment (10 agents)
Operating Cost/Year
$5.9k
LLM APIs + infrastructure
Year 1 Vietnam Savings
$102k
Partial year
Year 1 ROI
211%
$242k benefit / $77.9k cost
Year 2+ ROI: 3,612% ($219k savings + revenue improvements / $5.9k operating cost)

8. Critical Risks

Transition-Specific Risks

Risk Impact Probability Mitigation
Agent quality doesn't match Vietnam team CRITICAL MEDIUM Phase 1 parallel run mandatory, delay transition if gaps exist
Client discovers transition, loses confidence HIGH LOW Proactive comms strategy, emphasise quality commitment
Vietnam team morale collapses, key person quits early HIGH MEDIUM Transparent comms, training incentives, retention bonuses for Hank/Lucia
Legal issues (wrongful termination, contract disputes) MEDIUM LOW Vietnam employment lawyer (Month 1), respect all contract terms
Melbourne hires underperform (can't manage AI agents) HIGH MEDIUM Rigorous hiring (AI literacy tests), 3-month probation, clear KPIs

Client Retention Risks

Risk Impact Probability Mitigation
MyRacehorse churns ($187k/year) CATASTROPHIC LOW Andy/Steve personal exec relationship, quarterly check-ins, Account Mgmt Agent monitoring
Hungry Minds churns ($124k/year) CATASTROPHIC LOW Same as above
Top 5 client churn (any) CRITICAL MEDIUM Sr Account Manager owns relationships, proactive health monitoring
Quality drops during transition → widespread churn CATASTROPHIC LOW Phase 1 parallel run, human QA mandatory Phase 2-3, AI Ops Mgr oversight

Go/No-Go Checkpoints

Checkpoint 1: Month 1 (Now) — Commit to transition?

▼

Required confidence level:

  • ✓ Directors aligned on Vietnam closure decision
  • ✓ $72k agent build budget approved
  • ✓ Legal review of Vietnam contracts initiated
  • ✓ Comfortable with Moderate scenario revenue targets ($1.28M)

If NO: Stay at $80k director salaries, keep Vietnam team, focus on organic growth only.

Checkpoint 2: Month 4 (May 2026) — Proceed with Phase 2?

▼

Required evidence:

  • ✓ Finance Agent successfully replaced Ann (zero issues)
  • ✓ SEO Agent ready to replace Paul (quality validated)
  • ✓ Account Mgmt Agent identified $50k+ in upsell opportunities
  • ✓ Sr Account Manager hired and performing well

If NO: Extend Vietnam contracts, delay transition 3-6 months, continue agent development.

Checkpoint 3: Month 6 (Jul 2026) — Close Vietnam office?

▼

Required evidence:

  • ✓ Codex agent handling 80%+ of dev work (Hank confirms quality)
  • ✓ Enhanced Sammy handling ads execution (Megan confirms quality)
  • ✓ Content Production Agent generating client-ready content
  • ✓ Zero client churn due to quality issues

If YES: Proceed with office closure (Mike/Zoe contracts end, retain Hank/Lucia remotely).

If NO: Renew Mike + Hank contracts 3-6 months, continue validation, delay $150k raise to Q4.

Checkpoint 4: Month 9 (Oct 2026) — Increase to $150k?

▼

Required evidence:

  • ✓ Revenue on track for $1.2M+ (run rate $100k/mo+)
  • ✓ Vietnam team down to 0-1 people (Lucia only, optional)
  • ✓ AI Ops Manager hired and managing agent fleet successfully
  • ✓ Client satisfaction stable or improved (NPS/feedback)
  • ✓ Gross profit margin >20%

If YES: Increase director salaries to $150k effective Month 10.

If NO: Delay raise to Month 12, investigate revenue/cost gaps.

Document Information

Prepared: 15 February 2026
Updated: 15 February 2026 (Vietnam transition strategy)
Purpose: Strategic roadmap to increase director compensation from $80k to $150k each via office restructure
For Directors: Andy Nguyen, Steve Nguyen, James