Erik's Weblog 2.0

July 30, 2007

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CEO Salaries and Compensation Explained

In 2006, Apple CEO, Steve Jobs whose official executive salary form Apple was $1, earned approximately $646 million dollars in compensation from Apple. Whereas, Forbes 2nd richest man in the world, Warren Buffet, with an estimated net worth of over 40 billion dollars, earned $100,000 as an executive salary. How are these figures determined and what does executive compensation consist of is a common question. Generally speaking, executive compensation is the keyword for how top executives of business corporations are paid.

Funny how you almost never hear of a CEO taking a pay-cut, even when a company is pink-slipping a few thousands employees.