ETHICS Troy is the sole shareholder and CEO of BQT. BQT is a very profitable S corporation. Until re- and is not eligible for the qualified business in- come deduction, and he would be allocated more business income that is not subject to cently, Troy's salary was in line with the salaries of comparable CEOS. However, Troy recently learned that he could reduce his tax burden if FICA tax and qualifies for the qualified business income deduction. After considering the poten- he were to reduce his salary. In particular, by tial benefits, Troy decided to cut his salary in half. Do you think Troy's decision is ethical? Why lowering his salary, Troy would receive less em- or why not? ployee compensation that is subject to FICA tax Points to consider: The strategy appears to be tax motivated, but is that the sole purpose? Does Troy have other reasons for reducing his salary other than the salary paid to similarly situated executives? What other factors should be considered