Google (GOOG): The stupidity of the $1 salary

Even worse than an insult - its tax fraud - they are dodging social security and medicare taxes!

Those programs are in enough trouble without the uber-rich setting artificially low salaries.

I've been advised that doing this with my S-corp - paying myself dividends but a minimal salary would be illegal and a huge audit flag.

How do these guys get away with doing this so publicly? Are there no IRS auditors? We have payroll taxes and everyone is supposed to pay them.

wouldn't "tens of millions in compensation" mean "tens of millions" of net profit attributable to share holders dissapearing?

If the differance between $1 and "tens of millions" mean nothing to the management of google, i fail to see how taking "tens of millions" will motivate them to increase future cashflows by a third which is essentialy what is required to bring the current price back up to around $700 in this kinda market with equity risk premiums going through the roof

It's an easy way to avoid income taxes. Once the cap gains tax is repealed, they'll jump in line for the more conventional "you're lucky I'm CEO" bonuses and orthodox "it could be worse" stock grants.

Doug,

This is strictly a tax dodge, plain and simple. Even Warren Buffett's $100,000 salary might as well be a dollar. They are taking compensation in dividends and capital gains and avoiding "ordinary income" taxes.

It is a huge fraud.

This article is ridiculous.

Of course the stockholders would be happy to see the stock back above $700 (so would Brin and Page). The $1 salary is not a disincentive nor is a few million a likely incentive for either Brin or Page.

Brin and Page either have the incentive to see Google continue to succeed or they don't. Personally, I still think they have it.

Shows that shareholders are never happy. As a potential investor in google, I am much more content if they take stock as an incentive, instead of an over bloated paycheck at the end of the year.

Oops sorry, I thought "Blogging Stocks" was about capitalism and not about communism? Buffett, Jobs, and their ilk have created more jobs and made such a contribution to the GDP of this country through their genius that the stocks granted to them
are merely just a drop in the bucket. As such many of their shares will be given away or passed on to charity. I'd rather have Buffett doing my estate planning than Bush & Co. Really, what is wrong with you people? Obvious you missed the recent explosion in the shares of Apple. Oh well, plenty of room on the train between $140 and $260. I've revised my estimate back to $260 from $259.

Beltway Greg

Greg,

Your just too...

Looking forward to dinner one of these days!