One-dollar salary

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A number of top executives in large businesses and governments have worked for an annual salary of one dollar.

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Dollar-a-year men

The "Dollar-a-year men" were business and government executives who helped the government mobilize and manage American industry during periods of war, especially World War I, World War II, and the Korean War. U.S. law forbids the government from accepting the services of unpaid volunteers. Those employed by the government had to be paid a nominal salary, and the salary establishes their legal relationship as employees of the government. In World War I, the Avisory Commission to the Council of National Defense was staffed largely by Dollar a Year men, including Bernard Baruch, Robert S. Brookings, and Herbert Bayard Swope. Massachusetts Governor Alvan T. Fuller, wealthy in his own right, served in several government positions on such terms. Kentucky's Ashland Oil and Refining Company founder and CEO, Paul G. Blazer (1890-1966), served twice as a government salaried dollar-a-year man: from 1933 to 1935 under President Franklin D. Roosevelt's National Recovery Administration on the Code of Fair Competition for the Petroleum Industry as Chairman of the Blazer Committee and a second time during World War II as Chairman of District II Refining for President Roosevelt's Petroleum Administration of War. During World War II, socialite Doris Duke worked in a canteen for U.S. sailors in Egypt at such a salary.

In Canada during World War II, C. D. Howe, Canada's "Minister of Everything", created a rearmament program using "dollar-a-year men". An example was John Wilson McConnell, the owner and publisher of the Montreal Star, who was appointed Director of Licences for the Wartime Trade Board, a position for which he served for free. Others include E. P. Taylor and Austin Cotterell Taylor.

Some recent one-dollar salary earners worked in government as well, such as former California Governor Arnold Schwarzenegger, former Massachusetts Governor Mitt Romney, former New York City Mayor Michael Bloomberg, Bloomberg's older daughter Emma who has also worked for the city. Most recently, President Donald Trump has donated the first three months of his salary to the National Park Service and plans to donate all of his salary during the term. This was as he had initially said he wanted to only accept a $1 salary but was informed that it was not legally possible to forgo the majority of the full salary.

Maps One-dollar salary

Instances of alternative compensation

While many executives who take a one-dollar salary also choose not to take any other forms of compensation, a number earn millions more in bonuses and/or other forms of compensation. For example, in 2010-11 Oracle's founder and CEO Larry Ellison made only $1 in salary, but earned over $77 million in other forms of compensation.

In some cases, in lieu of a salary, the executives receive stock options. In the United States, this approach impacts personal tax liability, because although stock and option grants are taxed at federal income rates, they may be exempt from some portion of payroll taxes (typically 7.65%) used to fund Social Security and Medicare.

Executives argue that remuneration through stock instead of salary ties management performance to their financial benefits. The assumption is that stock prices will reflect the actual value of a company, which reflect the management performance of the company. Detractors argue that this incentive may drive short-term planning over long-term planning.

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Notable one-dollar salary earners

The following people have been employed for annual salaries of one dollar:

• Sergey Brin (Alphabet Inc.)
• Jack Dorsey (Twitter)
• Robert Duggan (Pharmacyclics)
• Larry Ellison (Oracle Corporation)
• Darren Entwistle (TELUS)
• Richard Fairbank (Capital One Financial)
• David Filo (Yahoo!)
• William Clay Ford Jr. (Ford Motor Company)
• Richard Hayne (Urban Outfitters)
• Herbert Hoover, (former President of the United States)
• Lee Iacocca (Chrysler Corporation)
• Steve Jobs (Apple)
• John F. Kennedy (former President of the United States)
• William Knudsen (Chairman of the Office of Production Management)
• Jan Koum (Whatsapp)
• Edward Lampert (Sears Holdings)
• F. Thomson Leighton (Akamai)
• John Mackey (Whole Foods Market)
• Evan Spiegel (Snap)
• N. R. Narayana Murthy (Infosys)
• Elon Musk (Tesla Motors, SpaceX)
• Larry Page (Alphabet Inc.)
• Vikram Pandit (Citigroup)
• Mark Pincus (Zynga)
• Richard Riordan (Mayor of Los Angeles)
• Henry Samueli (Broadcom Corporation)
• Eric Schmidt (Google)
• Arnold Schwarzenegger (former Governor of California)
• Terry Semel (Yahoo!)
• Jeremy Stoppelman (Yelp)
• Sehat Sutardja (Marvell Technology Group)
• Meg Whitman (Hewlett-Packard)
• Jerry Yang (Yahoo!)
• Mark Zuckerberg (Facebook)
• Vishal Sikka (Non-Executive Chairman and CEO of Infosys)

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In popular culture

In 1947 Jimmy Durante released a song, "Dollar A Year Man" with the refrain, "I'll work for Washington for a dollar a year, but I gotta get paid in advance."

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References

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Further reading

• Kimes, Mina (June 1, 2011). "A $1 CEO isn't a bargain". CNN. Fortune Management. Retrieved March 20, 2015. 
• Hamm, Jung, and Wang (2015). "Making Sense of One Dollar CEO Salaries". Contemporary Accounting Research, 32 (3): 941-972, Fall 2015.
• Reagan, Michael D. (1959) "Serving two masters : problems in the employment of dollar-a-year and without compensation personnel" Ph.D Dissertation, Princeton University
• Cuff, Robert D. (1967). "A "Dollar-a-Year Man" in Government: George N. Peek and the War Industries Board". The Business History Review. Vol. 41: 404-420. 

Source of article : Wikipedia