I do think the SPS DAO would have to 1099 him, I think that's pretty standard. As far as the cost and the measurable performance, those are both valid issues. In fact I think most that are voting against are for these 2 reasons, as most people like and trust Clay himself.
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Its come to light that Clay is based out of Thailand so US tax law isn't relevant but that definitely calls to question the salary.
$60000 a year in Thailand? lol he's loving this opportunity haha