20% Owner Executives
•The executive exemption also includes employees who:
*own at least a bona fide 20-percent equity interest in the enterprise; and
*are actively engaged in management of the enterprise.
•The salary level and salary basis requirements do not apply to 20% equity owners.
Finally, the regulations recognize certain business owners as exempt executives.  Employees who own at least 20-percent equity in a business and are actively engaged in the management of the enterprise are exempt executives.  For example, an employee who owns 20 percent of the business and manages the finances of the business is an exempt executive.  Conversely, a person who owns 20-percent of an enterprise, but whose only responsibility is to run a cash register would not qualify as an exempt executive.