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In addition to the other helpful replies there's some more information here: https://en.wikipedia.org/wiki/One-dollar_salary

>In the United States, this approach impacts personal tax liability, because although stock and option grants are taxed at federal income rates, they may be exempt from some portion of payroll taxes (typically 7.65%) used to fund Social Security and Medicare.

They're still considered highly-compensated, just not through payroll.

$1 salaries is because they get paid through a complicated structure that eventually means they owe capital gains tax (20%) instead of income tax (40%).

No.

Based on this short Wikipedia page [1] it sounds like it's done to avoid payroll taxes like social security and medicare.

Any other reason to do this?

[1] https://en.wikipedia.org/wiki/One-dollar_salary