That is a good message to send to stockholders.
I wonder how many shares Brin and Page sell a year.
Or if they are also playing the stock option game.
Schmidt has been selling, but didn't notice much for Brin or Page.
http://finance.yahoo.com/q/it?s=GOOG
George
Frank Muto wrote:
http://money.cnn.com/2006/03/31/technology/google/index.htm
Google leaders stick with $1 salary
According to the search engine's latest proxy filing, Eric Schmidt,
Larry Page and Sergey Brin each turned down a raise.
By Paul R. La Monica, CNNMoney.com senior writer
March 31, 2006: 4:38 PM EST
NEW YORK (CNNMoney.com) - Google's co-founders and chief executive
officer were offered a raise this year by the company's compensation
committee, but the three turned it down and are sticking with their
current annual salary of $1.
The search engine company made the disclosure in its proxy statement,
which was filed Friday with the Securities and Exchange Commission. CEO
Eric Schmidt and co-founders Larry Page and Sergey Brin first requested
that their salary be cut to $1 in the second quarter of 2004, just
before the company's initial public offering. Prior to that, Schmidt was
making $250,000 a year while Page and Brin each earned a salary of
$150,000.
In Friday's filing, Google (Research) said that "due to our continued
strong performance, the leadership by Eric, Sergey and Larry throughout
the year, and below-market cash compensation levels, the Committee
determined that an increase in cash compensation opportunities was
merited, and we offered Eric, Sergey and Larry an increase in salary and
bonus for 2006."
The company added that Schmidt, Page and Brin turned the offer down
because "their primary compensation continues to come from returns on
their ownership stakes in Google. As significant stockholders, their
personal wealth is tied directly to sustained stock price appreciation
and performance, which provides direct alignment with stockholder
interests."
According to the filing, Schmidt owns about 12.45 million shares of
Google, which are worth about $4.86 billion based on the company's most
recent stock price. Brin owns about 31.6 million Google shares and Page
owns a little more than 32 million shares. So their stakes are each
worth more than $12 billion based on current stock prices.
Frank Muto
President/CEO
FSM Marketing Group, Inc
----- Original Message ----- From: "Peter R." <[EMAIL PROTECTED]>
Check with your CPA on that.
The IRS likes to see salary and other activities that represent that
your "company" really is a company and not a tax shelter so that you
avoid the sole proprietor tax schedule.
(It's called piercing the veil -- if you don't have minutes and
annual shareholder meetings and run it like a business, you lose the
corporate shield for tax purposes AND for liability as in civil
litigation).
----- Original Message ----- From: "Larry Yunker"
<[EMAIL PROTECTED]>
I think you are on the mark here... according to what I picked up
through my Business Planning coursework, the IRS has fairly
consistently applied a reasonableness test to the salary of a CEO who
is also a majority shareholder. But reasonable is a fairly broad
term. Zero would not be reasonable in any case, but $10,000 or more
might meet the reasonableness standard for companies with limited
revenues. On the other hand, if your company is turning $1MM in
sales, you better be paying your full time CEO substantially more than
$10,000 because the IRS will see right through that ploy. In
addition, if you try to pay the CEO through an incentive program
(dividends or stock options) in lieu of salary, the IRS will treat the
capital-gains as real income and will tax the CEO at the higher
personal rate. You have to provide a balance of salary and other
non-salary incentives in order to get the maximum tax advantage.
- Larry
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