We need to understand the difference between receiving equity returns and earning salary compensation. If you are compensated by renting out your time, even if you work in high-paying professions like law or medicine, the compensation you receive will be very limited, insufficient to allow you to achieve financial freedom. However, if you own corporate equity, you can receive passive income—meaning the company keeps making money for you even when you are on vacation.

Fundamentally, working a job means working for someone else. While corporate owners bear the risks and responsibilities, they also possess intellectual property and brand value. Therefore, the compensation they pay you will inevitably be less than the value you create. To get you to work, they will provide you with the minimum necessary compensation.