Aibu to ask around how much the director of a company earns?
WillyNilly00 · 21/12/2019 07:21
So I've been seeing a guy and it's starting to get serious, it all seems amazing. He's very successful in his work and my mum recently asked me about how much he was paid, she's not money obsessed but just curious. So it has dawned on me that I have literally no idea and I wouldn't be able to guess. Everyone close to me works in trades or retail, more like manual labour roles, including myself.
I had a quick google but the results are varied so I'll give a little background:
It's a smallish IT security company that has contracts with other large companies.
He has only been a director for a year but previously only the owner was above him, he works closely with the owner.
He's completely involved with the finances of the company as well as the practical stuff.
He's on call all the time and sometimes but rarely has to drop everything and go there to assist (this has happened once in almost a year).
He seems to have endless disposable income but is not flash so its difficult to tell, he certainly doesn't budget every penny like myself.
I know this is a very crude question but I honestly don't have a clue!
Trafalger · 21/12/2019 07:25
Could be 50k or it could be a million! I dont know why you or your mum needs to know. I'm sure if it gets more serious you can have those kind of conversations.
I'm the director of a company and I earnt a whole £175 in total from it last year! My 1 share is worth £1. This is a company purely that holds an asset so it is not a fair comparison, but wanted to show you that being a director doesn't always mean a lot of money!
Tfoot75 · 21/12/2019 07:28
Any from nothing to millions could be earned by a company director. But if you search the company accounts on companies House online, if they are big enough they will have to disclose how much they pay their directors. May only file abbreviated accounts though which wouldn't cover that but it's worth a Google!
Tfoot75 · 21/12/2019 07:31
By the way being a director is completely different to being a shareholder, you can find out on companies House if he also has shares, but directors can't earn dividends if they aren't also shareholders, and shareholders are not employed so don't earn a salary.
Insideimsprinting · 21/12/2019 07:35
I'm also a company director, for many years toook less than minimum wage. Last year or two take the minimum wage and have started drawing dividends as we needed to keep capital in the business for various reasons.
It depends on the size of the company if its a medium to large income could be good if its small it might not be as high as you think depending on what profits the company turns, staff and other overheads etc. Its just a title at the end of the day, we are a small garage and petrol station so our income is never going to be on par with for example a larger company dealing in concrete etc who have larger profit margins, bigger turnover etc. Its all relative to the business rather than just being a company director.
BikeRunSki · 21/12/2019 07:39
The value of the dividends directors get depends on the profit the company makes.
DH is a company director, having bought out a retiring partner a few years ago., He has a good salary, but is also paying off a large loan we took out for him to buy in, so the financial benefit of directorship has not really come to fruition yet.
WillyNilly00 · 21/12/2019 07:39
This is all really interesting, I honestly had no idea how it worked! He does have shares and I don't know if this is relevant but he also has a non-compete clause in his contract so must be valuable to the company (I know this as he jokes that if he ever wanted to leave we'd go buy a farm somewhere sunny )
Thank you everyone for not absolutely roasting me, I will tell my mum that she's a nosey old lady next time even though she was just being curious, we have a very close relationship.
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