Google Top Brass Gets $1 Salary

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It’s pretty funny that Google’s top brass all earn $1 a year in salary but security for one of them is over $530,000. They need a half million in security?

The Internet search giant paid its top executive, Eric Schmidt, a salary of $1 and a holiday bonus of $1,723 in 2006, according to a regulatory filing Wednesday. But Schmidt's personal security cost shareholders $532,755, representing the bulk of his compensation.
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you know, for the reinforced armor plated hummers, cctv, bodyguards, land mines, and thorny shrubs to keep those really persistant intruders out. you get paranoid when you got $13billion and know as much as google :D
 
There has been a small trend in this recently. I dont know all the names, but I belive the CEO of Delta, Charles Schwab and the big Lee at Chrystler. I am sure that when you have a net worth more than we will make in a lifetime, you dont need a multimilliion dollar salry and bonus every year. Kudos to this guy. I hope that money went somewhere more usefull.

And I am glad it was his decision and not the governments.
 
its not like they dont have $$$ invested all over and make money just by sitting with their thumb up their asses. this is just pr bullshit



you want to make a statement? give your entire company a dollar raise how bout?
 
This reminds me of the ole Bill Gates salary news.

He has about a 1 million per year salary...yet his house taxes are estimated to be around 2.5 million per year on his Washington Property :D
 
Sadly, what most don't realize is it a simple way for them to avoid paying taxes.

Well not entirely avoid, but by taking a $1 a base compensation you don't have to deal with a base pay of $1million. So it is a way for them to reduce their bottom line.

So in essence all they are doing is ripping off the government and cheating their local tax base.

But, hey if I could do that I would. Just my crapp 2 cents.
 
Especially since in their higher tax brackets the government takes ridiculous amounts of money from them. It can get up to 50% of their income easily! :eek:
 
If I was a multi-billionaire I'd spend a couple bucks on security too. Kidnapping for cash isn't too prevalent in the US, but it's not unheard-of, and more to the point the Google guys are public figures and there are always nutcases out there. Then again, why the company should foot the bill is a different question.

But hey, unlike the case with most CEOs, these guys actually created the company that coddles them. I don't think anyone's going to begrudge them a few perks.
 
Don't they still make tons of money of the stock dividends? Steve Jobs has been doing this for years I think.
 
Grentz said:
Especially since in their higher tax brackets the government takes ridiculous amounts of money from them. It can get up to 50% of their income easily! :eek:
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Where on earth did you get that idea? As of 2006 the richest 1 percent of Americans paid about 30 percent in federal taxes, and maybe a few percentage points more in state and local.

Not trying to start a debate on taxes or whether or not they're fair, just pointing out a fact.
 
Nugget said:
Where on earth did you get that idea? As of 2006 the richest 1 percent of Americans paid about 30 percent in federal taxes, and maybe a few percentage points more in state and local.

Not trying to start a debate on taxes or whether or not they're fair, just pointing out a fact.
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add in a 20% from state and local and your at 50% easy

hell make shit and i get taxed hard almost 20% fed+state and local
 
This $1 is a PR Joke.

I'm so sick of it. So they get $1 on their paycheck, wooptie do.

They get security detail, transportation, and a ton of kickbacks. And when they finally come around they get an incredible bonus.

I'm not going to say much about my CEO, but the previous one had a mile of underground tunnels constructed, body guards, armor vests, multiple bullet proof cars to create a diversion, private jet for security, company provided cars (not crappy cars either), paid vacations, paid expenses... you name it.

That one dollar becomes millions before you know it.
 
This is totally a tax thing, they get a $1 salary, but they get "personal security" they get to write off as a business related expense, hence charge the company and the company pays less taxes, the car they own... a "company" car, what Lamborgini? Ferrari? Probably didn't have to do squat there. They own most of the shares of stock, so the only time they pay taxes is when/if they cash out, they have the value of the stock they can always borrow against for any sort of other personal stuff, so they really don't have much in a yearly tax liability. Another way for the ultra rich to avoid paying taxes. Granted they'll get hammered if they sell stock off, however I"m sure there are tax loopholes there too that they can exploit as well.
 
The part that amazed me was that they actually NEEDED security.

I mean, yeah....billionaire = needs security....it just never struck me that Google would need a half-million in security a year.


Most of us old-timers remember promoting Google to all our friends when those two guys were still in a dorm room somewhere (not that long ago).

I pray every night that I have those kinds of problems... :D
 
Steve said:
The part that amazed me was that they actually NEEDED security.

I mean, yeah....billionaire = needs security....it just never struck me that Google would need a half-million in security a year.


Most of us old-timers remember promoting Google to all our friends when those two guys were still in a dorm room somewhere (not that long ago).

I pray every night that I have those kinds of problems... :D
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Yeah they need heavy security at all times. Our company even went to the extend of moving offices and setting up truck stop barriers.... there are a lot of postal workers out there that it's downright scary.
 
Kudos to him. He probably has an agressive stock based compensation package.

What he makes on intrest alone is more than most of us see a year I would imagine. Not including CD's and municipal bonds.

He doesn't need the salary clearly. And that rocks in my opinion.
 
Any investor with a clue would want all of said company's officers to receive that 1$ compensation. Who cares about tax implications, think about company performance.

If your officers/directors are working predominantly towards meeting compensation plan goals (raise the company's net income by x percent, or outperform x peer group by x amount and receive this bonus) then shareholders are much more likely to get "hardworking" leadership at that company.

Kick em mostly options/warrants/sar's (stock appreciation rights.) All considered forms of options, and all incentivize the execs to make the co. perform better....

Bottom line, the big boys are gonna get the big bucks regardless. The more we can tie those big bucks to the performance of their company, the better off shareholders will be.
 
Martyr said:
its not like they dont have $$$ invested all over and make money just by sitting with their thumb up their asses. this is just pr bullshit



you want to make a statement? give your entire company a dollar raise how bout?
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They have money invested all over and make money just by sitting their. So they can quit and make that money. But these guys are working their asses off all year. These guys probably work harder then most if not everyone in here. They deserve a salary. A salary or wages are for services rendered, and they have. Passive income from their capital investments are irrelevant.
 
I don't see how this could possibly have anything to do with taxes. No matter what their tax bracket, the more the they make, the more their net gain.

They don't need a salary. With the massive amount of Google stock they own they get paid for their work by bringing up the stock value.
 
What happened to the edit button? Anyways, to continue further regarding the $1 raise for it's workers, their duty is to shareholders, not workers, sad to say. Workers have rights, but shareholders are what the board and executives work for, not workers nor consumers/customers.

And Steve, yeah most people don't realize it but these billionaires need security. All it takes is one nut who thinks he can make a million or two for blackmail or kidnapping. My company was having a christmas lunch when we ran into Bill Gates at the local country club. He was with his kids and my boss, who has seen him before along with Warren Buffet, etc. mentioned "oh he didn't have security with him this time."

If I'm worth a billion or more I'm definitely hiring security.
 
Taxes or not, at least these guys deserve to be rich. How about the new CEO of Ford that got paid $28 million in just 4 months? Hows that gonna get the company turned around?

And back to evading taxes. When these guys die, the gov't will take up to 45% of everything over $1 million for estates. Let them do what they want, they deserve it.
 
Nemesis999 said:
I don't see how this could possibly have anything to do with taxes. No matter what their tax bracket, the more the they make, the more their net gain.

They don't need a salary. With the massive amount of Google stock they own they get paid for their work by bringing up the stock value.
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Well they probably make all thier money with dividends and investments.. Captial gains tax is a hell of a lot lower than income tax. Factor in tax shelters and other was to defer taxes, and they wind up paying a hell of a lot less.

The tax laws are rather complicated, but I believe the percentage you are taxed on capital gains is based on your income tax bracket. Regardless, capital gains tax is maxxed around 28% than the 40% for income.

Anyway, I could probably live a few lifetimes on what they make in investments and dividends after captial gains taxes are applied every year! :D
 
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