Compensation for Individuals Associated with Corporations

The video explains the compensation structures for different roles within a corporation. Shareholders, as passive owners, receive dividends from corporate profits. Directors may receive a stipend or salary for their services, while officers must receive compensation, which can be in the form of currency or equity. The video outlines the general structure of how these roles are compensated, emphasizing that shareholders do not receive a salary unless they also serve as directors or officers.

Who among the following is generally not required to receive a salary for their role in a corporation?

• Shareholders

• Directors

• Officers

• Managers

What type of compensation might directors receive for their services to a corporation?

• Only equity

• No compensation

• Only dividends

• A stipend or salary

What is a mandatory form of compensation for officers or managers of a corporation?

• Salary

• Equity awards

• Dividends

• Bonuses

How do shareholders typically receive their compensation from a corporation?

• Through a salary

• Through bonuses

• Via dividends

• By receiving equity

Under what condition might shareholders receive a salary from a corporation?

• If they are also directors or officers

• If they request it

• If the corporation has excess profits

• If they hold a majority of shares