35 votes

What stops management from just "compensating" themselves by taking all the stock in a company?

Answer: the board. The board oversees the operations of the company and essentially supervises the CEO. The amount of actual supervision that takes place varies by company. While I cannot comment on ...
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15 votes

What stops management from just "compensating" themselves by taking all the stock in a company?

This may vary according to the jurisdiction the company is incorporated in, but in the one I'm somewhat familiar with (Denmark), neither the CEO nor the entire board can validly issue an unlimited ...
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12 votes

What stops management from just "compensating" themselves by taking all the stock in a company?

You might enjoy reading the book "Pay without Performance: The Unfulfilled Promise of Executive Compensation" The theoretical limit on what executives are paid comes from "arm's length bargaining" ...
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9 votes

How are the $1 salaries that CEOs sometimes take considered legal?

Part of your first link has this statement that I suspect you are missing: However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees ...
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7 votes

What stops management from just "compensating" themselves by taking all the stock in a company?

The first line of defense against the CEO doing this is other board members; the CEo can't actually do anything without approval from the board of directors. But you ask "What stops management from ...
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6 votes

What stops management from just "compensating" themselves by taking all the stock in a company?

There are two different issues here1: Creation of new shares: the company uses them to raise capital. Theoretically they do not affect the value of current stockholders assets. If you have a $1,000,...
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4 votes

How are the $1 salaries that CEOs sometimes take considered legal?

Even under the executive exemption, see Exemption for Executive Employees Under the Fair Labor Standards Act (FLSA) Section 13(a)(1) as defined by Regulations, 29 CFR Part 541, it seems that a minimum ...
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3 votes

How are the $1 salaries that CEOs sometimes take considered legal?

Taxable fringe benefits are included in taxable wages for the purpose of FLSA. So when those executives get to use company cars or company jets that value is "wage" even if it isn't salary.
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