A question often arises regarding the salary of most billionaires and big CEOs that why do they take a salary of just one dollar, It may seem strange to see a person who owns billions of dollars in assets, Why would he only earn a yearly salary of one dollar?, So let us know the answer to this question today.,
Why do billionaires take only one dollar as salary?,
Billionaires and big corporate CEOs often take a dollar salary to reap legal and tax benefits, One dollar of salary is taxed less and this means they can reduce their personal tax liability, Apart from this, if a company pays a CEO a high salary, So this can also affect the company’s tax returns, A one dollar salary ensures that the tax rate is minimal,
Apart from this, most billionaires and CEOs take performance based bonuses instead of their salary, This means that they keep their salary to a minimum and get a higher bonus based on the success of the company, This method gives them more benefits, Because their reward grows with the success of the company, This method of bonus benefits the CEO and the company in the long run and it directly benefits the company,
Helps to improve the image
Taking a one dollar salary presents a positive image for the company, This shows that the CEO or founder is completely dedicated to his company and prioritizes the long-term benefits of the company over his personal gain, This image is for investors, Builds a strong trust between employees and the public and also shows the social responsibility of the company,
At the same time, questions are often raised by shareholders and regulatory authorities regarding high salaries, The one dollar salary is a way of sending a message to the company’s shareholders and regulatory authorities that the CEO is not getting much money as his salary, This helps the company to show that the salary they are drawing is known to everyone and is in line with the shareholders,
Which company’s CEO takes a salary of one dollar,
CEOs of different companies take a salary of one dollar, For example, Steve Jobs set his salary as Apple CEO at one dollar, Whereas his entire salary was in the form of shares of his company, Just like this, Facebook’s Mark Zuckerberg and Google’s Larry Page and Sergey Brin also followed this practice by taking a salary of one dollar,
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