Taxpayers Subsidize High CEO Salaries, Study Says

Law360, New York (November 13, 2013, 3:14 PM EST) -- American taxpayers are subsidizing hundreds of millions of dollars in CEO compensation, according to a study released Tuesday by Public Citizen.

Corporations must pay taxes on executive compensation that exceeds $1 million per year, but many companies avoid taxes on additional salary by paying executives a lower base salary and instead paying more money as performance-based compensation, which is tax deductible at any dollar figure.

The 20 highest-paid CEOs were paid base salaries totaling $28 million in 2012, according to the study. That same year, those...
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