It was announced recently that Facebook CEO Mark Zuckerberg plans to take a salary of just $1 this year. This decision puts Zuckerberg into a growing group of large-corporation CEOs who receive a dollar annual salary (while still having an exorbitant amount of stock).
I applaud CEOs who take part in this. As an entrepreneur, I see this as a great thing!! A CEO’s income should be based upon their employees’ performance. If the business and all of its members doesn’t succeed, the CEO doesn’t succeed. This ideology is reflected well in the $1 salary efforts.
I’m not saying CEOs shouldn’t have a salary at ALL, but a base salary for the first few years and then joining the $1 club guarantees that if the company doesn’t excel, neither does the CEO. This way it’s more of a group effort.
The “$1 Club,” as some call it, is a strategy that became popular right around the dot-com boom, when Steve Jobs took a $1 salary at Apple in 1998. But its roots are way older. The idea dates as far back as World War I and II, when top government executives known as “dollar-a year-men” would take the $1 salary to help the country stabilize. The practice has resurfaced recently because many CEOs are receiving flak for their substantial paychecks while the economy struggles to get back on its feet.
The $1 Club is especially popular with leaders in the tech industry: Those who have taken part in the Club include Eric Schmidt of Google, Meg Whitman of HP, and Larry Ellison of Oracle.
Zuckerberg in particular won’t have much to worry about: His share of Facebook’s IPO in 2012 was worth about
Is the $1 Club just a symbolic gesture to make those on top appear humble, or a genuine
collaboration-building effort? CEOs: Would you try this? Why or why not??