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.

What is the general structure of compensation for shareholders compared to directors and officers?

What is meant by equity compensation in the context of corporate salaries?