Why should a closely held business be concerned with owners’ compensation? It’s because the owner compensation package may be scrutinized. Examples might include buy-sell situations, estate and gift tax valuations or litigation proceedings, such as shareholder disputes and divorce. These issues might even come into play with business succession planning.
Some owners treat the company’s bank account like a personal slush fund. Conversely, other owners draw minimal salaries because they undervalue themselves or because the business is cash poor. When it comes to business valuations, the higher an owner’s compensation, the lower the company’s value will be—unless an adjustment is made.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
