Abstract

http://ssrn.com/abstract=1979791
 
 

Footnotes (224)



 


 



A Tax Response to the Executive Pay Problem


David I. Walker


Boston University School of Law

January 5, 2012


Abstract:     
Many observers believe that that the public company executive labor market is deficient and results in systematically excessive compensation. This Article accepts that premise and considers potential regulatory responses. Specifically, this Article proposes and analyzes a two-pronged tax response to the problem of excessive executive pay – the imposition of a surtax on executive pay in excess of a threshold combined with investor tax relief. These two prongs respond to the chief concerns raised by excessive executive pay. The imposition of a surtax would reduce the after-tax income of executives, which would directly address the unfairness of excessive pay and the effect of excessive pay on inequality of resources. Investor tax relief would tend to reverse the inefficient distortion in capital allocation that results from excessive pay and would ensure that these distortions were not exacerbated by companies increasing executive pay to offset the surtax.

Number of Pages in PDF File: 61

working papers series





Download This Paper

Date posted: January 5, 2012 ; Last revised: January 7, 2012

Suggested Citation

Walker, David I., A Tax Response to the Executive Pay Problem (January 5, 2012). Available at SSRN: http://ssrn.com/abstract=1979791 or http://dx.doi.org/10.2139/ssrn.1979791

Contact Information

David I. Walker (Contact Author)
Boston University School of Law ( email )
765 Commonwealth Avenue
Boston, MA 02215
United States
Feedback to SSRN


Paper statistics
Abstract Views: 617
Downloads: 108
Download Rank: 81,042
Footnotes:  224

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.234 seconds