【知らない人多すぎ、、】経営者が役員報酬を高くするべき理由について税理士が解説します

Summary

The video script discusses the intricacies of setting executive compensation in a company, highlighting the benefits of both high and low compensation strategies. It emphasizes the importance of balancing personal and corporate tax considerations, suggesting that a well-thought-out compensation plan can maximize cash retention and operational efficiency. The script also touches on strategies to mitigate risks, such as using executive loans and credit guarantees, and suggests consulting with tax professionals for personalized advice. It concludes by inviting viewers to subscribe to the channel for more insights on tax-saving and asset management.

Takeaways

• 😀 Setting optimal executive compensation is challenging, and understanding the benefits of both high and low compensation is crucial.
• 💰 High executive compensation benefits include increased personal funds for the executive, which can enhance their lifestyle.
• 🏦 A higher executive compensation can serve as a financial buffer for the company during tough times, allowing the executive to lend money to the company without interest or repayment deadlines.
• 💼 Keeping a higher executive compensation can also prepare the executive to cover personal liabilities in case of loan repayment issues, especially with credit guarantee loans.
• 📉 Lowering executive compensation can reduce the overall tax burden by lowering personal and corporate tax rates, as corporate tax rates are generally lower than combined personal income and resident tax rates.
• 💡 Lower executive compensation can also decrease social insurance costs, which increase with higher compensation rates.
• 🔑 Utilizing executive benefits, such as bonuses, can strategically reduce social insurance costs as there is a cap on the social insurance rates applied to benefits.
• 📈 Executive benefits can be a flexible tool for financial management, allowing adjustments based on the company's performance and profit forecasts.
• 📊 There is a need to balance the benefits of high and low executive compensation to maximize personal take-home pay while considering the company's financial health.
• 🏷 It's suggested that setting executive compensation around 1 million yen per month could be a reasonable benchmark to avoid exceeding the corporate tax rate when combined with personal income and resident tax rates.
• ⚠️ There are risks associated with setting executive compensation too high, such as not being able to claim certain deductions and potentially facing social insurance costs that are not capped.

Q & A

What is the main topic discussed in this video script?

The main topic discussed in the video script is the optimal setting of executive compensation and the benefits and drawbacks of setting it high or low.

What are some benefits of setting executive compensation high?

Setting executive compensation high can increase the amount of money the executive has for personal use, potentially serve as a financial buffer for the company during tough times, and help the executive prepare for situations where they may need to repay loans from credit guarantee loans.

How can a high executive compensation act as a financial buffer for a company?

A high executive compensation can act as a financial buffer by allowing the executive to lend money to the company as 'executive borrowing' without repayment deadlines or interest, which can be very useful when the company's performance deteriorates.

What is the role of 'executive borrowing' in a company's financial strategy?

Executive borrowing is a strategy where the executive lends money to the company without a repayment deadline or interest, serving as an easily accessible means of securing funds when the company's performance declines.

What is the benefit of setting executive compensation low in terms of taxes?

Setting executive compensation low can help reduce the overall tax burden by lowering the combined personal and corporate tax rates, which can be advantageous if the personal tax rates exceed the corporate tax rates.

How does lowering executive compensation affect social insurance premiums?

Lowering executive compensation can help reduce social insurance premiums, as these premiums are tied to the amount of compensation. This can be a strategy to manage costs for both the company and the executive.

What is the significance of 'executive allowance' in the context of social insurance premiums?

Executive allowance is a part of compensation that has a cap on the social insurance premiums that need to be paid. By providing allowances above this cap, the executive can avoid paying additional social insurance premiums on that portion of their compensation.

How can executive allowance be used as a strategy for year-end financial planning?

Executive allowance can be used as a flexible component of compensation that can be adjusted based on the company's financial performance. It allows for strategic decisions on whether to pay out the allowance or not, based on the company's year-end financial situation.

What is the importance of submitting a 'salary determination notice' for executive compensation?

Submitting a salary determination notice to the tax office is important for ensuring that the executive compensation is recognized as a deductible expense. It allows for the compensation to be paid out according to the notice without being subject to non-deductible penalties.

What are some considerations when deciding on the amount of executive compensation?

Some considerations include the executive's personal financial needs, the company's financial performance and stability, tax implications, and the potential need for the executive to contribute financially to the company in times of crisis.

What advice does the script provide for those looking to optimize their executive compensation strategy?

The script suggests consulting with a tax professional or financial advisor to discuss the optimal setting of executive compensation, taking into account both personal and corporate financial goals and obligations.