Executive compensation requires careful decision-making
Abstract: Dealership owners, understandably, want themselves and top executives to be compensated fairly for their work, results and interest. So how does a dealer-owner achieve that goal without attracting undue IRS scrutiny and claims of inappropriate compensation? This article discusses the “balancing act” of setting an executive’s compensation and examines the challenges faced by C corporations, S corporations and similar corporation types. It also looks at the role of regulators and the interest by other parties in compensation amounts.