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DUSHYANT

Hey I am on Medialย โ€ขย 1y

Generally in funded startups. Investors give the approval on how much salary executives can draw. This happens because after raising funds founders no longer hold >= 51% of the company otherwise they can decide whichever salary to draw without the approval of board of investors. Another reason of taking less salary in cash is because they don't want to give tax rather grow the company, increase value of their shares and later figure out tax saving loopholes/techniques once their shares become liquid (IPO/Acquisition). In short more cash you earn the more you will pay taxes to government!

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