148. The Internal Revenue Code limits the tax deduction for all compensation over $1 million for CEOs

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14–8. The Internal Revenue Code limits the tax deduction for all compensation over $1 million for CEOs unless the pay is tied to company performance. Proponents argue that this rule benefits shareholders. “Everyone knows that CEOs are overpaid and that their pay is not appropriately tied to performance. This rule helps solve both problems.” Present a counterargument.

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Managerial Economics And Organizational Architecture

ISBN: 9781260571219

7th International Edition

Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley

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