Many CEOs are paid more in salary than their companies pay in U.S. taxes

Kim Bhasin:

Public outcry against lofty executive compensation has been constant since the beginning of the financial crisis, and a new study from the Institute for Policy Studies is sure to fan the flames even more.

The Washington think tank found that 25 of the 100 highest-paid CEOs are actually making more money than their companies are paying in federal income taxes. The average compensation for those 25 CEOs was $16.7 million, according to Reuters.

The IPS report also notes that many of the companies spent more money on lobbying than they paid in taxes.

For a chart containing the details, consult Bhasin’s article in Business Insider.

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About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
This entry was posted in Economic policy, Economics, Income inequality, News. Bookmark the permalink.

2 Responses to Many CEOs are paid more in salary than their companies pay in U.S. taxes

  1. hortonw says:

    CEOs are often overpaid and corporate taxes may be too low. But equating the two is weird. One point of a CEO’s mission is to minimize the taxes.

  2. Guy N. Texas says:

    Comparing the two makes some sense. Assuming sane tax laws and a corporation having an average to decent year, one would expect a Fortune 500 corporation to have profits at least an order of magnitude (hopefully more) greater than the salary of its highest paid employee. In companies where this is often not the case, then it’s likely that there’s something wrong with the tax code, the salary structure in society (or perhaps just the company), or the performance of the CEO, or some combination of these.

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