Company director salary & bonus

secretpassword

Has anyone come across any guidance documents for directors pay?
Need to satisfy investors in our small manufacturing company but we do not want to be seen to be under or overpaying ourselves.
Is there a standard guide to bonuses that are ordinarily allowed?
Also what % of profits should be paid as a dividend to the shareholders?

antoinolachtnai

Director's pay in a startup or rapidly growing company tends to be about maintaining a lifestyle that you had previously.

There is no standard guide for bonuses. You really need to tie it to the business plan. If you are in line with or ahead of the business plan there should be a bonus and it should be worked into the bonus.

In a growing company, the usual thing would be that no dividends should be paid unless there is some special tax reason for doing so. You need to reinvest the profits in the company.

You really need to talk to the accountant about this.

secretpassword

Thanks.
There must be some 'theory' to dividend payment that they teach on MBA courses.