Why Do Some CEOs Take $1 Salary

2013-05-01 33

Learn why some CEO's make a $1 salary.

Some CEOs of major companies like Facebook and Google only claim an annual salary of one dollar.

However, some still receive significant stock options and bonuses adding to their income and existing fortunes.

Although the ruse of a one dollar yearly salary is undertaken by the extremely wealthy, it can be a way to motivate better business so that the success of the company dictates how much money they make.

The first CEO to take a one dollar annual salary was Chrysler’s Lee Iacocca back in the 1970s, and there have been many since then, including Steve Jobs of Apple, and John Mackey, the co-founder and co-CEO of Whole Foods Market.

The CEO of Duke Energy takes no official paid salary, but still made an income of 8 point 8 million dollars in 2010.

A 2011 study from the Ohio State University says: “Rather than being the sacrificial acts they are projected to be, our findings suggest that adoptions of one dollar CEO salaries are opportunistic behavior of the wealthier, more overconfident, influential CEOs.”