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The vast majority of companies that have implemented a $1 salary are major, public businesses. But does it make practical business sense for small corporations and medium-sized enterprises to move away from large salaries and offer alternative forms of remuneration?
“It really depends on the growth profile of the company and its long-term strategy. Paying in stock can be a useful way for a smaller, fast-growing organisation to conserve much-needed cash and only paying out if the planned growth materialises,” says Simon Patterson, managing director at Pearl Meyer, an international executive compensation consulting firm.
“Again, if the CEO is also a founder, then they may be able to afford to forego a fixed salary, but this won’t work for everyone who has bills to pay,” says Patterson.