I guess thats proof that I'm not the only moron in business that works for free, to maximize their net worth. Now all I need to do is make my stock price worth 4 billion dollars like Googles :-)

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- From: "Frank Muto" <[EMAIL PROTECTED]>
To: "WISPA General List" <wireless@wispa.org>
Sent: Friday, December 15, 2006 2:11 PM
Subject: Re: [WISPA] salary


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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