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Not to say what he is doing is not great it is. However, Salary my be only one part of his compensation even as the owner. A friend of mine had his own business and took a small salary, because he also received a quarterly dividend which was the majority of his compensation. Remember a salary pays fed, SS, medicad, local and state taxes and if you are in the higher tax bracket, that is far more than the 15% for dividends for Feds and some state do not tax dividends.
Also he not doing these people much of service, they now think their skills are worth more and if they want to go somewhere else, no one will pay them that much.
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