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Owner/Officer Compensation

Worksheet

This worksheet can help you calculate your owner/officer compensation.

Primary (Single) Owner Compensation Calculation

2023
2022
2021

Total annual compensation

In multi-owner businesses, the "primary owner" is typically the individual most likely to be replaced by a hypothetical buyer and may also be identified by reviewing factors such as ownership percentages, historical compensation and total work effort. Please include ALL compensation, benefits and perks paid to the primary owner. This can include items such as W-2 wages, guaranteed payments, payroll taxes, insurance, retirement contributions, personal auto allowance, etc.

Average number of weekly hours

Please enter the average annual weekly hours provided by the primary owner for each year.
HOURS
HOURS
HOURS

Top employee/manager total compensation

If the primary owner/operator is absentee or semi-absentee, some or all of the compensation paid to the employee or manager covering the day-to-day operations may be "added back" to reach the level of cash flow available to a hypothetical buyer. Please enter the historical compensation paid to the company's top manager or employee.

Subtotal - Primary Owner Compensation

Additional Owner(s) Compensation

When there are two or more owners, an adjustment must be made involving the comparison of what the second (and third, fourth, etc.) owner is actually paid versus what a hypothetical buyer would have to pay for a replacement employee at a market cost.

Related Party Compensation (non-owners)

A company may also employ related parties (such as spouses, children, family members, etc) to provide services to the business. In some cases, the related parties may be overpaid or underpaid for their services. A hypothetical buyer would need to pay a market wage for these same services.

Total compensation

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