Download or read book The Taxation of Executive Compensation written by Brian J. Hall and published by . This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past 20 years, there has been a dramatic increase in the share of executive compensation paid through stock options. In this paper, we examine the extent to which tax policy has influenced the composition of executive compensation, and discuss the implications of rising stock-based pay for tax policy. We begin by describing the tax rules for executive pay in detail and analyzing how changes in various tax rates affect the tax advantages of stock options relative to salary and bonus. Our empirical analysis leads to three conclusions. First, there is little evidence that tax changes have played a major role int the dramatic explosion in executive stock option pay since 1980. Although the tax advantage of options has approximately dounbled since the early advantage of options has approximately doubled since the early 1980s options currently have only a slight tax advantage relative to cash - approximately $4 per $100 of pre-tax compensation to the executive. A more convincing story for the dramatic explosion in stock options involves changes in corporate governance and the market for corporate control. For example, there is a strong correlation between the fraction of shares held by large institutional investors and the fraction of ececutive pay in the form of stock options, a result that holds both longitudinally and cross-sectionally. Second, we find evidence that the million dollar rule (which limited the corporate deductibility of non-performance-related executive compensateion to $1 million) led firms to adjust the composition of their pay away from salary and toward "performance related pay, " although our estimates suggest that substitution was minor. We find no evience that the regulation decreased the level of total compensation. Third, we examine whether there is evidence for significant shifting of the timing of option exercieses in response to changes in tax rates. After replicating the Goolsbee (1999) result regardin tax-shifting with our data for the 1993 tax reform, we shoat no such shifting occurred in either of the two tax reforms of the 1980s. Moreover, we find evidence that much of the unusually large level of option exercises in 1992 was the result of the rising stock market rather than the change in marginal tax rates

Download or read book Taxation of Executive Compensation written by Harvey L. Frutkin and published by LexisNexis. This book was released on 1987 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation of Executive Compensation written by Harvey L. Frutkin and published by LexisNexis. This book was released on 1987 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation of Deferred Employee and Executive Compensation written by Henry Sellin and published by . This book was released on 1961 with total page 744 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Effects of Taxation written by Challis A. Hall and published by . This book was released on 1951 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Executive Compensation a Total Pay Perspective written by Bruce R. Ellig and published by McGraw-Hill Companies. This book was released on 1982 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Executive Compensation Best Practices written by Frederick D. Lipman and published by John Wiley & Sons. This book was released on 2008-06-27 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive Compensation Best Practices demystifies the topic of executive compensation, with a hands-on guide providing comprehensive compensation guidance for all members of the board. Essential reading for board members, CEOs, and senior human resources leaders from companies of every size, this book is the most authoritative reference on executive compensation.

Download or read book Executive Compensation written by United States. Congress. Senate. Committee on Finance. Subcommittee on Taxation and published by . This book was released on 1992 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Executive Compensation written by and published by . This book was released on 1988 with total page 740 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Summary of Testimony on Deferred Executive Compensation written by United States. Congress. Joint Committee on Internal Revenue Taxation and published by . This book was released on 1969 with total page 1388 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does tax policy affect executive compensation evidence from postwar tax reforms written by Carola Frydman and published by . This book was released on 2011 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The trends in executive pay and labor income tax rates since the 1940s suggest a high elasticity of taxable income with respect to tax policy. By contrast, the level and structure of executive compensation have been largely unresponsive to tax incentives since the 1980s. However, the relative tax advantage of different forms of pay was small during this period. Using a sample of top executives in large firms from 1946 to 2005, we also find a small short run response of salaries, qualified stock options, and bonuses paid after retirement to changes in tax rates on labor incomeâ?"even though tax rates were significantly higher and more heterogeneous across individuals in the first several decades following WWII. We explore several potential explanations for the conflicting impressions given by the long-run and short-run correlations between taxes and pay, including changes in social norms and concerns about pay equality

Download or read book U S Master Compensation Tax Guide written by Dennis R. Lassila and published by . This book was released on 2003-08 with total page 840 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Explains in clear and concise language the field of taxation of employee and executive compensation, providing practical and comprehensive guidance."

Download or read book The Impact of Personal Income Taxation on Executive Compensation written by Peter Katuscak and published by . This book was released on 2005 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the effect of personal income taxation on the sensitivity of executive compensation to company performance and the use of stock option and restricted stock grants underlying this sensitivity. The theoretical model predicts that, if a single tax rate applies to the entire compensation package, an increase in the tax rate weakly diminishes the equilibrium level of managerial effort and the after-tax pay-to-performance sensitivity, with the effect on the pre-tax pay-to-performance sensitivity being ambiguous. When salary and option gains are taxed at a higher rate than stock gains, tax changes also induce shifting among the individual compensation instruments. Interestingly, this differential taxation leads to a positive amount of stocks in the compensation contract even in the absence of any desire to incentivize the manager. In addition, an increase in the tax rate applied to salary and option gains may increase the level of managerial effort in equilibrium. On the other hand, an increase in the tax rate applied to stock gains weakly decreases the equilibrium level of managerial effort and strictly decreases the amount of after-tax pay-to-performance sensitivity generated by stock grants. The second part of the paper exploits the variation in the U.S. federal personal income tax rate generated by the Omnibus Budget Reconciliation Act of 1993, as well as variation in the combined federal and state income tax rates during the period 1992-1996 to empirically evaluate the impact of personal income taxation on the pay-to-stock-price sensitivity generated by stock-option and restricted stock grants. The results show that an increase in the ordinary income tax rate decreases the pay-to-stock-price sensitivity generated by option grants when time series variation in the marginal tax rate is utilized in the identification, with the estimates retaining the same sign but being statistically insignificant when only the variation in the marginal tax rate originating from cross-sectional variation in the federal income tax rate and/or state tax rate changes is used in the estimation. On the other hand, stock grant sensitivity is found to be unresponsive to changes in the ordinary income tax rate.

Download or read book Personnel Protection Executive Compensation and Fringe Benefits written by Jerome Miller and published by Elsevier. This book was released on 2013-08-26 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to IRS code, any property or service that an executive receives in lieu of or in addition to regular taxable wages is a fringe benefit that may be subject to taxation. There are exceptions to this rule, however, which may include security services provided. In Personnel Protection: Executive Compensation and Fringe Benefits, the factors necessary to exclude security-related expenses from the executive’s taxable gross income are defined, and the benefits to both the executive and the company are discussed. This eight-minute video presentation of narrated slides is one of 11 modules in the Personnel Protection presentation series, which is designed for companies considering an executive security program or for companies with an executive security program already in place. Each presentation in the series is narrated by Jerome Miller, formerly a commander in the Detroit Police Department and senior manager of international and special security operations at Chrysler Corporation, and Radford Jones, formerly manager of global security and fire protection at Ford Motor Company after 20 years with the U.S. Secret Service. Other topics in this series include concepts of executive security; advance procedures; the executive threat assessment profile; the selection of executive security personnel; kidnapping issues and guidelines; security procedures for residences; and worksite, aircraft, and vehicle operations. Personnel Protection: Executive Compensation and Fringe Benefits is a part of Elsevier’s Security Executive Council Risk Management Portfolio, a collection of real world solutions and "how-to" guidelines that equip executives, practitioners, and educators with proven information for successful security and risk management programs. The eight-minute, visual PowerPoint presentation with audio narration format is excellent for group learning Covers the specific section of the IRS code that defines "fringe benefits" and explains how it impacts the executive’s compensation when security services are provided Describes the features of a protection program that allow for the exclusion of these services from the executive’s taxable gross income

Download or read book Effects of Taxation written by Challis A. Hall Jr. and published by . This book was released on 2013-08 with total page 382 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Myths and Realities of Executive Pay written by Ira Kay and published by Cambridge University Press. This book was released on 2007-08-27 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Popular perceptions of executive compensation in the United States are now part of a full-blown mythology fueled by critics who have little direct experience with the inner workings of corporations, their boards, and the executive teams who ultimately shoulder the responsibility for business success or failure. This book documents the realities of executive compensation by investigating the extent to which the pay for performance model governs executive pay levels. It also assesses the relative success of this model in creating value for shareholders and robust job growth for U.S. workers and provides detailed, real-world guidance for designing and executing effective executive compensation plans. Based on extensive empirical research and decades of direct experience in the field, Myths and Realities of Executive Pay settles the debate about executive compensation and the role it plays in the broader U.S. economy.

Download or read book An Introduction to Executive Compensation written by Steven Balsam and published by Elsevier. This book was released on 2002-04-13 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: General readers have no idea why people should care about what executives are paid and why they are paid the way they are. That's the reason that The Wall Street Journal, Fortune, Forbes, and other popular and practitioner publications have regular coverage on them. This book not only proposes a reason--executives need incentives in order to maximize firm value (economists call this "agency theory")--it also describes the nature and design of executive compensation practices. Those incentives can take the form of benefits (salary, stock options), perquisites (reflecting the status of the executive within the organizational culture. This book is important because it takes the elements of an executive compensation package apart, analyzing them in the contexts of both economic theory and corporate practice and then explains how, under varying conditions, one might construct a compensation package that optimizes an executive's and a corporation's performance. Key Features * Presents an objective analysis of current executive compensation practices * Comprehensively reviews of academic literature and extant practice * Explains and illustrates the various components of the compensation package * Discusses the incentive, financial reporting, tax, political, equity, and firm value effects of those components