Compensation vs Revenue

[Lord2k]

Hello there. How are you guys doing?

I have a little question that has been bothering me for some time. Do CEO and other head position salaries correlate to the company's revenue all the time or are there exceptions to this?

I have seen, especially in cases of some niche construction companies, that the CEO's compensation can be in the seven figures, even though the company's revenue is only 10 - 15 million dollars. How can this be?

Do CEOs of private companies have more jurisdiction in how much they can be compensated if the overhead is very low as opposed to public companies? What are the limits? Please enlighten me as I am in the dark.

Thanks.

Sincerely,

Steve

[noob]

It's all in the negotiation and often time if the CEO is the founder, especially in smaller businesses, they get to dictate 100% of their pay. In other cases, its all in the negotiation.