HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » JPMorgan CEO gets 35% pay... » Reply #18

Response to TrollBuster9090 (Reply #5)

Fri Jan 22, 2016, 02:42 PM

18. Part of that is driven by the tax code.

There are nasty surtaxes on salaries over a certain amount.

This drives money from salaries to bonuses.

There are more taxes for cash payouts. This drives compensation towards stock options.

Both were the result of federal attempts to use the tax code to stop CEO compensation increases. People tend to find ways around regulations and rules intended to restrict their behavior.

It works for non-CEO compensation, too. For much of the last 20 years wages have remained flat. This is news. But compensation for a lot of jobs has increased because pre-tax/non-wage compensation has increased. So at my job I get paid a salary, but every year my compensation goes up even faster because my employer covers increased health insurance costs. (They could pay me the additional money so I could pay the insurance premium increases, but I'd be taxed on that additional pay amount. The result of this quirk in the tax code was to drive money into better health insurance plans, which then were castigated as "cadillac" plans.)

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 29 replies Author Time Post
IDemo Jan 2016 OP
SoapBox Jan 2016 #1
wordpix Jan 2016 #19
840high Jan 2016 #2
Proserpina Jan 2016 #3
wordpix Jan 2016 #20
Proserpina Jan 2016 #22
mountain grammy Jan 2016 #4
Stuart G Jan 2016 #17
TrollBuster9090 Jan 2016 #5
LineLineReply Part of that is driven by the tax code.
Igel Jan 2016 #18
wordpix Jan 2016 #21
Deny and Shred Jan 2016 #6
Plucketeer Jan 2016 #7
Divernan Jan 2016 #8
hatrack Jan 2016 #15
Uncle Joe Jan 2016 #9
lsewpershad Jan 2016 #10
passiveporcupine Jan 2016 #11
Capt.Rocky300 Jan 2016 #13
wordpix Jan 2016 #25
Capt.Rocky300 Jan 2016 #27
DarthDem Jan 2016 #14
hatrack Jan 2016 #16
Proserpina Jan 2016 #23
FiveGoodMen Jan 2016 #28
Peace Patriot Jan 2016 #29
turbinetree Jan 2016 #12
Politicub Jan 2016 #24
Name removed Jan 2016 #26
Please login to view edit histories.