Troy is the sole shareholder and CEO of BOT. and is not eligible for the qualified business in- BQT is a very profitable S corporation. Until re- come deduction, and he would be allocated cently. Troy's salary was in line with the salaries more business income that is not subject to of comparable CEOs. However, Troy recently FICA tax and qualifies for the qualified business learned that he could reduce his tax burden if income deduction. After considering the poten- he were to reduce his salary. In particular, bytial benefits, Troy decided to cut his salary in lowering his salary, Troy would receive less em- half. Do you think Troy's decision is ethical? Why ployee compensation that is subject to FICA tax or why not? 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