The $1 Salary

By | Wed, Feb 4, 2009

Archives: It's Good/Fun to Know

CEOs often take a symbolic (and well-publicized) $1 per year salary. The heads of the Detroit automakers did it when seeking a bailout. Apple’s Steve Jobs and the founders of Google do it too. Of course, they get other benefits: options, shares, and use of the company jet, to name a few.

It’s paid, as you might expect, in a lump sum. And, just like a regular paycheck, an appropriate amount is taken out for state and federal taxes, usually less than 10 cents.

But guess what? Because of federally mandated minimum wage standards, the $1 per year salary is technically illegal.

(Source: Slate)

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One Response to “The $1 Salary”

  1. john c says:

    While a fair and just method of compensation is a good thing. The C.E.O.s in the news today are without ethics, loyaltys, patriotism, or soon a country.

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