Hey nairalanders, pls i would like to know how CEOs pay themselves be it a big or small businesses or companies, do they place themselves on salary or they just take money from the company's account when ever they want?
pls i need you views, answers and thoughts.

Mods pls help move it to the front page

Cash/Basic Salaries
These days, CEOs often receive base salaries well over $1 million. In other words, the CEO gets a terrific reward when the company does well. But they still receive the reward when the company does badly. On their own, big base salaries offer little incentive for executives to work harder and make smart decisions.

Bonuses
Be careful about bonuses. In many cases, an annual bonus is nothing more than a base salary in disguise. A CEO with a $1 million salary may also receive a $700,000 bonus. If any of that bonus, say $500,000, does not vary with performance, then the CEO's salary is really $1.5 million.

Bonuses that vary with performance are another matter. CEOs who know they'll be rewarded for performance do tend to perform at a higher level because they have an incentive to work hard.

Performance can be gauged by any number of things, such as profit or revenue growth, return on equity or share price appreciation. But using simple measures to determine appropriate pay for performance can be tricky. Financial metrics and annual share price gains are not always a fair measure of how well an executive is doing his or her job.

Executives can get unfairly penalized for one-time events and tough choices that might hurt performance short term or cause negative reactions from the market. It's up to the board of directors to create a balanced set of measures for judging the CEO's effectiveness. (See also: Evaluating a Company's Management.)

Stock Options
Companies trumpet stock options as one way to link executives' financial interests with shareholders' interests.

But options can also have flaws as compensation. In fact, with options, risk can get badly skewed. When shares go up in value, executives can make a fortune from options. But when they fall, investors lose out while executives are no worse off. Indeed, some companies let executives swap old option shares for new, lower-priced shares when the company's shares fall in value.

Worse still, the incentive to keep the share price motoring upward so that options will stay in the money encourages executives to focus exclusively on the next quarter and ignore shareholders' longer-term interests. Options can even prompt top managers to manipulate the numbers to make sure the short-term targets are met. That hardly reinforces the link between CEOs and shareholders.

Stock Ownership
Academic studies say that common stock ownership is the most important performance driver. CEOs can truly have their interests tied with shareholders when they own shares, not options. Ideally, that involves giving executives bonuses on the condition they use the money to buy shares. Let's face it: Top executives act more like owners when they have a stake in the business.



Read more: A Guide To CEO Compensation | Investopedia https://www.investopedia.com/managing-wealth/guide-ceo-compensation/#ixzz58QD4cWhJ

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I don't know about other companies, but my uncle owns one small firm,when he first started, he employed someone, so at the end of the month, they shared the money with him taking 45% and 35% for the guy,and then the remaining goes to the company as the business grows bigger he placed himself on a salary and the other employees too, and the remaining goes to the company, but he still spend part of the company's money o, and he return it later

B

space booked

A good CEO place himself / herself on Salary based.
but if the COY is a virgin one. a smart CEO recycles.

Nice question

Good question

Good question

Wow

I need to know too

n

Most are on salaries. Some simply depend on a % of the profits.
Mind you, some of the CEOs are not owners.

I av a small business and I pay myself salary

CEOs decide how much they want to be paid. Mark Zuckerberg's salary is $1 a year. Warren Buffet's salary is $100,000.00.

Normally people like to register their businesses as corporation because doing so allows you to pay yourself $1 for instance and place the burden of your life as a part of your business expenses. That's just a way of evading tax... Corporations are taxed after all their expenses have been deducted.

When you find someone paying themselves huge sums like $1 million a year for instance, they simply don't care about utilizing that method of evading tax.

So in the end, you will decide how you want to pay yourself. For instance if your business is registered as a corporation, you can list all the bills brought by the car as business expenses, or if you go out and eat with your friends, you can list the cost of the food and other things you acquired at the dinner as part of your business expenses... You can simply pay yourself a regular salary as income from most other business models are seen as personal income. This applies if you are a small or medium business owner or if you are a principal share holder in your company, but if you were employed as a CEO, then you'll have to wait for the board to decide your salary. Hope that makes sense.

Modified: If you are running a small business, you won't see the need for trying to evade tax by running the corporation model of business.

In most cases I have limit for withdrawal if it for my personal expenses

As a CEO, you place yourself on salary just like the employees. The money in your company account should be strictly for business operations or else you may begin to withdraw from it for private matters.

Intelligent question

salary, allowances and share of profit

.

Most firm place their CEO on salary+allownces

Spending all the monthly excess

By Minimum wage

Salary

ok

It is one of the terrible mistakes that CEO's commit. That is the reason majority of them remain stagnant despite their success. They eat away their money and believe that profit would keep coming.

They pay employees but fail to pay themselves for the growth of their business...

We discovered this and we brought up a model that would help CEO expand their business within the first three years that the business has stabilized...

If you need to know the model, please contact me via my signature and let's discuss.

Thanks.

The finance team should pay the CEO...

Even the president gets paid salary

My company ... my money .. my life


It should be no ones buisness

I am on Salary and my wife too












#MySignatureMyBusiness

CEOs are first of all a staff,so you need an employment letter stating your gross salary and other benefits you may enjoy.so you would be placed on the staff payroll earning monthly salary.

In addition,as a CEO you are also a director of the Company and you are also expected to earn sitting allowances and director''s fee.

Finally the board of directors fixes the emolument of CEO.ensure proper documentation of board resolution on all earnings by the CEO because the taxman may come knocking.