Receiving a $1 annual salary has become a sign that you've made it in the tech world. Steve Jobs may have started the trend with a single-digit salary starting in 1997 until his death in 2011. Facebook CEO Mark Zuckerberg also earned a $1 salary in 2013, but he received another $653,164 in "other compensation." Page and Google cofounder Sergey Brin have each received a $1 salary since 2004.

The fraction of total compensation that executives receive at the topmost echelons is heavily tilted toward "incentive" compensation, such as through stock options and bonuses, while compensation at the lowest rungs of the corporation is primarily in the form of fixed salary. 

Can you provide an economic explanation for this relationship between pay and position in the corporate hierarchy?

Answer rating: 100% (QA)

At the topmost echelons of a corporation executives are responsible for making strategic decisions t... View the full answer