amylsl_88

Hi everyone,

I decided to create this new thread, as it seems that different pple got diff definitions of basic salary.

snowcookie

Of course is CPF + take home pay!

Shyraiiyann

yeah lor. salary lei. the more the merrier

SG FTW!

ramcem

From a tax point of view, this is a flawed strategy.

The more salary you draw, the more you are taxed especially in any civilised society where income is taxed at a progressive rate. In S'pore, the highest tax bracket is 20%.

A wiser strategy for top income earners is to take advantage of the corporate structure sheltered by legal accounting. The corporate tax rate is currently also at 20% but will be 18% from 2008. What's more, there are many tax exemption schemes not available for the individuals such as claiming back GST.

In short, employess get paid, get taxed and spent what is left over. A company earns, spends like crazy and get taxed on what's left. By taking advantage of legal tax strategies, you can grow your wealth much faster.

That's why Bill Gates is not the highest paid in the world. Lee Kuan Yew probably draw more salary than him. John Chambers (ex-boss of Cisco) drew US$1 salary a year.

~Ramcem

"The reasonable person accepts the world it is. The unreasonable person insists on changing the world to suit his own requirements. This is why all progress depends upon the unreasonable person."

~Anonymous

"To be able to stand in the midst of darkness and live as though all about you is light, is the final test of the human spirit."

"The soul of man is immortal, and its future is the future of a thing whose growth and splendour have no limit."

Shyraiiyann

but its better than earning lil rite.

and wad? US1? reali meh

SG FTW!

ramcem

The rich become rich not by drawing a high salary as this is the highest taxed income of all. What they did is to protect their income at all cost from everyone especially the government. Some strategies are legal such as sheltered through corporations, setting up trusts or offshore entities. Illegal strategies include money laundering.

Famous people who ever draw US$1 salary a year include John Chambers and Steve Jobs. There are also a few others but I couldn't remember their names off hand. That should tell you about financial management. Other unbelievable $1 deals including Donald Trump buying over the Empire State building and ING buying over the collapsed Barings Bank.

~Ramcem

"The reasonable person accepts the world it is. The unreasonable person insists on changing the world to suit his own requirements. This is why all progress depends upon the unreasonable person."

~Anonymous

"To be able to stand in the midst of darkness and live as though all about you is light, is the final test of the human spirit."

"The soul of man is immortal, and its future is the future of a thing whose growth and splendour have no limit."

legendtale

basic salary is salary before OT, allowances, CPF and everthing. simply basic salary.

it is also before employee CPF deduction.

eg. basic salary = $1000
overtime = $500
employer CPF 13% = $195
employee CPF 20%= $300

gross salary = $1000 + $500 = $1500
take home pay = $1000 + $500 - $300 = $1200
basic salary, no matter how much OT or allowance, or wat is the CPF rate, is still $1000.

ramcem

Google CEO, Co-Founders Get $1 Salary

By MICHAEL LIEDTKE
The Associated Press
Wednesday, April 4, 2007; 4:52 PM

SAN FRANCISCO -- The trio of billionaires who run Google Inc. collected less than $600,000 in combined compensation last year while they raked in big jackpots by selling some of their holdings in the online search leader.

The total amount that Google paid its chief executive, Eric Schmidt, and co-founders Larry Page and Sergey Brin during 2006 would have been less than $5,200 if not for personal security and transportation costs, according to documents filed Wednesday with the Securities and Exchange Commission.

Schmidt's package totaled $557,466, including $532,755 for personal security. Page pay totaled $38,519, with most of the money covering personal transportation, logistics and security. Brin's 2006 pay consisted solely of a $1 salary and $1,723 bonus. Google paid the same salary and holiday bonus to Schmidt and Page.

The Associated Press bases its executive pay totals on salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

Schmidt, Page and Brin have refused to take anything more than a token paycheck for the past three years to promote the egalitarian spirit championed by the Mountain View-based company.

It's a sacrifice that the three executives can afford to make because Google's high-flying stock has elevated them into the ranks of the world's richest people. Meanwhile, hundreds of Google's early employees have become millionaires.

As of March 1, Page, 34, owned 29.2 million Google shares currently worth $13.8 billion while Brin, 33, held 28.6 million shares worth about $13.5 billion. Schmidt, 51, owns 10.7 million shares currently worth $5 billion.

The three men have been converting some of their holdings into cash by regularly selling some of their stockholdings since the company went public in August 2004.

Last year, Brin, Page and Schmidt made more than $2 billion combined from their Google stock sales, according to data compiled from SEC filings by Thomson Financial. Brin sold 1.99 million shares for a total windfall of $788 million last year while Page pocketed $666 million by selling 1.72 million shares. Schmidt cashed out 1.39 million shares during 2006 for a total $580 million.

Google's stock price rose by 11 percent last year, a gain that lagged the Standard & Poor's 500 index _ a blue-chip bellwether that the company joined during 2006. The S&P 500 rose by 13.6 percent last year.

Since its IPO, Google shares have surged to a more than fivefold increase, a meteoric performance that has created more than $120 billion in shareholder wealth. Google shares fell $1.58 Wednesday to close at $471.02 the Nasdaq Stock Market.

The rapid run-up in Google's stock has been driven by its search engine, which has become synonymous with looking things up on the Internet. The search engine also propels a lucrative online advertising network that enabled Google to turn a 2006 profit of $3.1 billion, more than doubling its earnings from the previous year.

The robust growth has enabled Google to add more than 8,000 workers during the past three years. At the end of 2006, Google had 10,674 employees _ all of whom were eligible for the same holiday bonus paid to Schmidt, Page and Brin.

Google's brain trust has already agreed to settle for a $1 salary again this year, rejecting an opportunity for a raise, according to the SEC filing.

"The reasonable person accepts the world it is. The unreasonable person insists on changing the world to suit his own requirements. This is why all progress depends upon the unreasonable person."

~Anonymous

"To be able to stand in the midst of darkness and live as though all about you is light, is the final test of the human spirit."

"The soul of man is immortal, and its future is the future of a thing whose growth and splendour have no limit."

funnysnow

i dun count cpf as salary leh..

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ComicDLegacy

Basic means your gross pay right ? excluding OT or others allowances.

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amylsl_88

Yup... excluding OT & other allowances.

Actually, basic salary is your take home pay + your CPF contribution.

legendtale

no read my post har?

basic not equal to gross