Comprehensive Guide to Executive Officer Compensation and Benefits

1. Executive Officer Compensation Decision-Making

• Sole Proprietorships: Flexibility in salary and withdrawals
• Corporate Entities:
  • Limited Liability Company (LLC)
  • Single-Member LLC (EURL)
  • Simplified Joint Stock Company (SAS/SASU)

2. Employee Status and Benefits

• Conditions for managers to be treated as employees
• Eligibility for unemployment benefits and requirement for an employment contract

3. Dividends and Profit Distribution

• Rights to dividends for company directors as shareholders
• Industry contributions and participation in profits
• Social and Tax Implications:
  • Social regime for distributed dividends
  • Tax regime updates (post-2018)

4. Benefits in Kind

• Definition of benefits in kind and examples (e.g., company assets used privately)
• Tax and Social Security Implications:
  • Taxation and valuation for income tax purposes
  • Social security contributions on benefits in kind

5. Partner’s Current Account: Lending to the Company

• Overview of a partner’s current account and its purposes
• Terms and Conditions:
  • Interest deduction rules
  • Account operation and repayment rights
  • Handling partner’s departure and current account balance

6. Payment for Services Rendered

• Possible contracts for services or property leasing by executives
• Regulated Agreements:
  • Approval requirements for contracts to avoid conflicts of interest
  • Exemptions for routine contracts

1. Executive Officer Compensation Decision-Making

Sole Proprietorships: