US CEOs Earned More Than Companies’ Tax Bills

Not the best look for capitalism…

Twenty-five of the best-paid chief executive officers in the U.S. earned more in salary and other compensation in 2010 than their companies’ federal income tax expenses as disclosed in public filings, according to a report by the Institute for Policy Studies.

The Washington-based nonprofit group’s report, released today, examined 100 publicly traded U.S. corporations with the highest-paid CEOs. It found that companies whose CEOs’compensation exceeded reported tax expense in 2010 had average global profits of $1.9 billion.

Companies in this group, according to the report, included EBay Inc., General Electric Co., Verizon Communications Inc., Boeing Co. and Dow Chemical Co.

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Andy Semple

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Comments

[Gary]

1.

Would the personal tax rates of the CEO's result in more tax going to treasury? The top income rate I think is 36.5% in the US so maybe it's not so bad after all.

[A Liberal]

2.

You so shouldn't have posted this on the Internet as the Left will rage about just how greedy CEO's are and reluctant to share their Wealth with the American people.
To my Left-wing Friends: In Capitalism YOU WORK FOR WHAT YOU HAVE!!!

[Anton]

3.

That is totally irrelevant, provided they are private companies not existing on subsidies. According to the shareholders (the only ones with skin in the game and a vote), the profits would be lower without the CEO's.

If the shareholders were unhappy they could vote a new board or sell their shares.

In the capitalist (or free market) system there is nothing stopping anybody striving for more wealth. People just have to decide for themselves if the sacrifices are worth the benefits.

[pk]

4.

"YOU WORK FOR WHAT YOU HAVE!!!"

I am yet to find anyone who actually 'earned' a 7 figure salary.

[Michael Sutcliffe]

5.

I am yet to find anyone who actually 'earned' a 7 figure salary.

If I company has created, say, $100million worth of value under the direction of a particular individual, where previously it was losing money and laying off workers, would you say that individual has earned a seven figure salary?

Because I can show you a few individuals who have done exactly this if you'd like.

[Vikas Nayak]

6.

I dont see a problem here.

Keep in mind, tax minimisation is completely legal, and done in a way to generate "socially responsible behaviour" from companies.

[pk]

7.

Michael I simply see it this way - a CEO who makes a 30 mil salary, no matter what improvments to share prices he makes, is not working 375 times harder than a small factory owner (for example) who pays himself $80k per year and employs 30 people in his local town or area.