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View Diary: Durbin takes Social Security off the table (216 comments)

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  •  only applies to "salary", not "performance bonus". (1+ / 0-)
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    freelunch

    Economic Policy Institute: Taxes and executive compensation

    Our key findings are:

        Companies are allowed to fully deduct components of executive compensation that meet the IRS requirements to qualify as “performance-based.” One of those requirements is shareholder approval. However, only very general information is provided to shareholders. Therefore, shareholders are asked to, and usually do, approve plans without knowing whether the performance conditions are challenging or not, and the potential payouts from the plan.

        Performance pay, such as stock options and non-equity incentive plans, that meets the IRS requirements for the “performance-based” exception is fully deductible. Salary, bonuses, and stock grants are deductible but subject to a limit of $1 million.

    As long as it's a "performance bonus", it's deductible.

    -7.75 -4.67

    "Freedom's just another word for nothing left to lose."

    There are no Christians in foxholes.

    by Odysseus on Sun Nov 25, 2012 at 11:20:31 AM PST

    [ Parent ]

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