We are used to hearing about CEOs of large companies making millions of dollars per year. However, there are some of the top CEOs who have decided to take a much different approach and go home taking only $1 per year. In today’s world who can survive with such a small amount? Interestingly, CEOs of one dollar salary club are still able to live comfortable lives and help their companies succeed. Stay with us to know the secret and meet the CEOs who have chosen to take a $1 salary.
What is a $1 salary club?
Sometimes people want to work without direct payment but cannot do it due to legal restrictions; also, they cannot be involved as volunteers. In such cases, they need to make a payment above zero to distinguish them from a volunteer, and they take a $1 salary as a courtesy. Many top executives in large companies and governments work for a $1 salary.
This idea emerged in the early 1900s when many industry leaders in the US wanted to offer their service to the government during World War. Due to legal reasons, they couldn’t join as volunteers. Hence, they charged a $1 salary per year. In the late 1990s and early 2000s, a larger number of corporate CEOs started to accept one-dollar salaries, often in circumstances where the company was struggling or when starting a venture.
Why do some of the top CEOs take a $1 salary?
In recent years, there has been a growing trend of CEOs taking a $1 salary. While there are many reasons why CEOs may take this approach, there are four main reasons that seem to stand out the most. The first reason is that it can help to build trust with employees and shareholders.
The second reason is that it can help to reduce stress and improve focus. And the third reason is that it can help to send a message about the company’s priorities. The last reason CEOs want to avoid taxes. However, taking a $1 salary doesn’t mean that they are earning less. The alternative compensation such as stocks/equity is more beneficial than the regular high-paying salary.
One Dollar CEO Club: Top 15 CEOs who take a $1 annual salary?
Elon Musk, CEO and Co-founder of Tesla Motors
Elon Musk, CEO and Co-founder of Tesla Motors, takes a salary of only $1 per year. He does this in order to focus on the long-term success of the company and not on making money.
Mark Zuckerberg, Co-founder, and CEO of Facebook
In 2013, Mark Zuckerberg, Co-founder, and CEO of Facebook, announced that he would be taking a $1 salary. He wanted to set an example for other leaders of public companies and show that he is committed to the company and its success.
Jack Dorsey, CEO of Twitter
By taking a $1 salary, Dorsey is able to show employees that he is committed to the company’s success and is not simply looking for a quick payout. In addition, this also helps to reduce unnecessary costs and makes the company more efficient.
David Filo, Founder of Yahoo
Filo takes one dollar as a salary. The primary reason is that he wanted to make sure that Yahoo was profitable and that he was not taking money from the company that could be used to improve the business.
Richard Hayne, CEO of Urban Outfitters
Although Hayne takes a one dollar salary, he still managed to make 4.67 times the retailer’s median pay rate. Additionally, Hayne is motivated by other factors, such as receiving stock options and bonuses based on the company’s performance.
$1 CEO Salary Club
$1 CEO Club (Representational Image: Collected)
Evan Spiegel, CEO and co-founder of Snap Inc
While this may seem like a humble gesture, there is a method to their madness. Spiegel believes that this will help to keep them focused on the company’s future and not their bank accounts.
John Mackey, CEO of Whole Foods Market
Mackey used to take a $1 million salary, but he started taking one dollar in 2007. Despite taking $1, Mackey’s net worth is $75 million. Further, he had nearly one million shares of stock in the company when Amazon decided to acquire Whole Foods.
Sergey Brin, President of Alphabet Inc.
Brin takes the $1 salary in order to reinforce the idea that it is not about the money. He also wants to set an example for other executives that they should not focus on money alone.
Larry Page, Co-founder of Google
Although Larry Page used to receive a $1 salary, he and Sergey Brin hold a majority of the company’s stake and controls 51% of the special class of parent company Alphabet’s voting shares.
Darren Entwistle, CEO of TELUS
Darren Entwistle is the CEO of TELUS and has been with the company since 2000. He has been credited with turning the company around and making it one of the most successful telecom companies in the world. And for all these, he takes only $1 a year.
William Clay Ford Jr. Executive Chairman of Ford Motor Company
Ford is a family-owned business, and Clay is the great-grandson of company founder Henry Ford. Clay has been with the company his entire career, starting as a product development engineer and working his way up through the ranks.
Mark Pincus, CEO of Zynga
Mark Pincus is the CEO of Zynga, one of the most popular social media game companies in the world. He is a self-made millionaire, and his story is one of entrepreneurial success, yet he takes one dollar per year.
Jeremy Stoppelman, CEO of Yelp
Jeremy Stoppelman is the CEO and the co-founder of Yelp, a company that connects people with great local businesses. Under Jeremy’s leadership, Yelp has become a leading destination for finding and sharing local information. Despite being a CEO, he takes a buck from his company.
Larry Ellison, Co-founder of Oracle
Larry Ellison is the co-founder of Oracle, one of the largest technology companies in the world. Ellison has been a driving force behind Oracle’s success and has been a pioneer in the technology industry.
Richard Fairbank, CEO of Capital One
Richard Fairbank is the co-founder, CEO, and chairman of Capital One Financial Corporation. He has been with the company since it was founded in 1988 and has been its CEO. Since 1997 he has been taking $1 of token salary.
Final Words
So far, we have discussed 15 CEOs who receive $1 annual salary from diverse reputed companies around the world. It is certainly a mystery to us that why do many CEOs take just a one dollar annual salary? Although there are many possible explanations for why CEOs might take a $1 salary, the most likely reason is that they want to create the perception that they are focused on the success of their company and not their own personal gain.
Source: United News of Bangladesh