Comments on: Do companies pay their CEOs more than they pay in taxes? http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traducere romana daneza http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-53499 Mon, 29 Sep 2014 13:56:39 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-53499 I discovered your blog web site on google and test a number of of your early posts. Continue to maintain up the very good operate. I just further up your RSS feed to my MSN Information Reader. Searching for ahead to studying extra from you in a while!

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30539 Sun, 04 Sep 2011 11:44:44 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30539 hsvkitty, it is called an annual report. Of course if you had more than two brain cells to rub together you’d already know that.

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By: GMAFB http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30498 Sat, 03 Sep 2011 02:10:56 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30498 To me, the most maddening part of this is that mainstream media, like Reuters, TIME, The New York Times and The Wall Street Journal give space to reporting on IPS’ so-called studies. It’s so predictable that they come out with a paper around Labor Day each year with an inflammatory title to further a populist agenda (“rich and successful people are pure EVIL!”). Their reports are filled with strong hyperbole and weak support. Felix unravels some of their shoddy analysis, but read the whole report and you’ll come across some even more laughable IPS conclusions–like CEOs who went to state universities are particularly bad people because they now run companies that seemingly pay low taxes to the U.S. government. IPS papers are like Michael Moore movies–they may have legitimate points to make, but they use such amateur methodologies to prove them, only because their story is juicier that way. High on entertainment value, low on integrity.

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By: hsvkitty http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30403 Thu, 01 Sep 2011 17:18:51 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30403 gustafus, I promise you I won’t be laughing, but as people go over the edge and with loss of job, family, self-esteeem and then health, the mind is not far behind. There are way too many guns in the USA to not have extreme violence be part of a revolt. People react badly when they have nothing left to lose … so your prediction is sadly all too likely.

Felix said, ” There are lots of ways that the authors of the study could have tried to back up that assertion. For instance, they could have taken a set of CEOs and split them into two groups: those who are paid more than their companies pay in taxes in Group A, and those who are paid less than their companies pay in taxes in Group B. Then they could have compared whether CEO salaries in Group A were higher than CEO salaries in Group B.”

There are some people who would rather have those figures to make the claim of the title. (Like the readers here, tax lawyers and Corporations) However, the people are very aware CEOs are overcompensated. Most are aware that although the tax rate for Corporations is 35%, the Corporations use tax shelters and havens and phony overseas PO boxes as ‘headquarters’ to avoid taxes.

The bulk of the story hit home as it was intended and like it or not, there was too much truth in it for the made up spin parts to fail. I do hope someone does the work and comparisons though! Corporations don’t have to reveal what they actually pay and you can be darn sure they won’t be making that big reveal to back up their whining that the report got it wrong…

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30396 Thu, 01 Sep 2011 14:45:47 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30396 hsvkitty, I think it was poo pooed as BS, the sort of fake “research” with a nice sound bite for people to quote without bothering to check the report.

FifthDecade, there is a famous bit in Adam Smith about collusion but hey facts, who cares, right?

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30393 Thu, 01 Sep 2011 13:48:59 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30393 For some time there’s been this unholy ring of support for ever-higher CEO salaries, whether or not the companies they are in charge of do well or not. Golden handshakes, parachutes, and taps in the executive bathroom mock Adam Smith’s economics. Seven figure pay packages for executives who are released early from their contracts because they failed to perform are just one example.

Merchant banks push for CEOs who, because of which Business School and Professor they had, are favourable to mergers – which is where the banks make big money. Business School graduates and Professors slip in and out of the Merchant banks and the Corporations, the remuneration committees are largely made up of the same type of people who, while voting on remuneration for CEO X, are also supporting their own future pay claims.

When anyone suggests a CEO pay reduction, the groupthink mentality reverts to the bankers’ favourite “But if we don’t pay the highest salaries people will move elsewhere!” That’s a bluff that really needs calling, because at the moment, shareholder interests fold almost instantaneously. In banking, would people really move elsewhere? What, to another bank in trouble? They’re all in trouble. They all need to save costs. But the CEO cadre have the shareholders in a state of permanent fear.

As for non-Finance CEOs: do they really believe that there are none amongst their underlings competent people who would take over their jobs for less salary?

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By: jpe12 http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30390 Thu, 01 Sep 2011 11:42:46 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30390 The report was truly a mess. They confuse tax benefits for refunds, when the two are only orthogonally related to one another; elsewhere they claim that lobbying expenses are deductible, which is false. As a tax lawyer, the report was like nails on a chalkboard.

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By: TinyTim1 http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30383 Thu, 01 Sep 2011 07:31:17 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30383 @atworkforu

CEO pay may well be too high.
Unfortunately the report in question presents no evidence that it is.
That is the point Felix is making.

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By: robertwaldmann http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30380 Thu, 01 Sep 2011 04:43:51 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30380 But there is something in the study. One good way to avoid paying income tax is to have no income (it works for corporations too). On average the 25 work for (hah who am I kidding command is more like it) corporations that are less profitable than the S&P average. So why are they compensated in the top 100 ? My guess is some of the corporations are really profitable and don’t pay taxes because of special industry specific tax breaks, but also that CEOs of larger corporations are paid more even if the corporations underperform.

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By: robertwaldmann http://blogs.reuters.com/felix-salmon/2011/08/31/do-companies-pay-their-ceos-more-than-they-pay-in-taxes/comment-page-1/#comment-30379 Thu, 01 Sep 2011 04:38:19 +0000 http://blogs.reuters.com/felix-salmon/?p=9652#comment-30379 Wow I didn’t know that The Institute for Policy Studies still exists. It is a left wing think tank. Not a think tank accused of liberal bias because it doesn’t take orders from the Koch brothers, not a liberal think tank, a left wing think tank. Note how the analysis is up to AEI and Heritage levels of seriousness.

I only remember the IPS for two reasons
1) Allende’s ambassador to Washington then defense minister (some guys get all the cushy jobs) Orlando Letelier worked there until he was blown up by Pinochet’s agent.
2) the cofounder Marcus Raskin is the father of this guy I knew in high school and college (Jamin Raskin a Maryland state senator last seen trying to get a medical marijuana bill passed — really medical not like the California pot for all law). That makes Marcus Raskin the father in law of a member of the Fed board of governors.

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