Eric Schmidt, Larry Page and Sergey Brin, the co-founders of Google, have agreed to take a pay cut.
In 2004, they each had been earning a six-figure salary, but during the second quarter they decided to reduce their salaries to $1. The company’s compensation committee offered to give them raises this year, but the co-founders declined, keeping their $1 salary for 2005.
They can afford to do this, of course, because of their enormous stake in the company. They can make their money through returns on their investment.
Steve Jobs from Apple has also taken this approach since returning to his company in 1998. Several executives at Cisco Systems had the same idea.
It would be nice to be able to afford to take a $1 salary. All I need to do is start a wildly successful business.
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In this day and Age, it is nice to hear of CEO’s doing this.
The CEO’s aren’t exactly doing this to be benevolent. It’s largely for tax reasons.
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