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"How is $1 salary justified to IRS? " What they report to the IRS and what they show on financials could be 2 totally different things. Entirely possible that
by larrys 12y ago
"How is $1 salary justified to IRS? "
What they report to the IRS and what they show on financials could be 2 totally different things. Entirely possible that they are paying taxes on a higher salary.
- zohaibr 12y agoBase Salary is just a tiny component of an executive's salary. It is a PR move. Executive salary is made up of Cash component (which includes Base Salary & Bonuses), & Equity. Equity constitutes towards almost 99 percent of an exec's salary. There are short term equity plans and long term equity plans. The equity payouts are generally in millions. Companies have to release a DEF14A (30-40 pages) each year to show Shareholder's how much the Top5 Execs were paid each year.