Apart from the obvious tax reasons, there is more to why most wealthy owners pay themselves next to nothing in salaries.
A salary limits rather promotes creativity. Salaries are quite linear in nature and are structured to be proportional to perceived/measured value addition.
That in itself is a cage for creativity, because creativity is by nature disproportional and non-linear. It is impossible to adequately reward creativity with a salary.
This is why a salary either dumbs you down or assures stability while you pursue your “non-salaried” passion.
For wealthy owners, they already have enough income from investments, with no need for the assurance a salary brings and they would rather die than be dumbed down.
I am not saying those that earn a salary are not creative. No. I am also a salary earner. I am saying, to nurture your creativity, you must find ways to go beyond your salaried work – either on your job or outside your job (side gig).
We find meaning in what we find joy doing, independent of a salary.
– Osasu Oviawe