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Why are there ceos with $1 salaries

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Why are there CEOs with $1 salaries? For simplicity, let's say that they have no other direct compenation, either in the form of stock grants, options, deferred bonuses, etc. Why do CEOs agree to such contracts. What is necessary for such an arrangement to work? Why do shareholders like such contracts? Why would it not work for 100% of the companies in the world?

Reference no: EM13528013

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