$1 Salary Exposed

I’m sure we’ve all heard about top CEOs taking a salary of just $1 per year. At this point, this has basically become a standard amongst the richest CEOs in the world from Elon Musk and Mark Zuckerberg to Sergey Brin and Larry Page. Even amongst those that take a cash salary, their cash salary is generally just a few percent of their total compensation, and the vast majority of their compensation is in the form of stock. Historically, $1 salaries were used in times of hardship like wars or recessions, but now, $1 salaries have turned into a strategy to maximize compensation and display loyalty to the shareholders. Companies are able to pay significantly more in stock than cash because stock compensation does not hurt their balance sheets. In terms of shareholder allegiance, $1 CEOs don’t get paid unless shareholders get paid. They have to reach specific growth targets to receive their compensation and the vast majority of their compensation comes in the form of stock appreciation. This video explains the top reasons CEOs take $1 salaries and why $1 salaries are not what they seem at first glance.

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Timestamps:
0:00 - $1 Salary
1:03 - Dollar Men
3:52 - Larger Salary
6:38 - Tax Advantage
9:15 - All In

Thumbnail Credit:
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Видео $1 Salary Exposed канала Logically Answered