20% of companies pick up CEOs’ taxes on perks
[Quote:]
CEOs are just like the rest of us: They hate paying for things out of pocket if they can find someone else to foot the bill.
Fortunately for them, in many cases there is someone willing to pick up the bill for selected personal expenses: the shareholders.
A new study from The Corporate Library finds that the most common form of perk being granted to CEOs these days is something called a tax “gross-up.” In plain English, it means that a company pays the taxes owed by the CEO on benefits granted by the company.
The Corporate Library, a shareholder watchdog group, found that 20% of major American companies, or 657 of nearly 3,300 examined, picked up the tab on at least one tax owed by the CEO.
“We are sure that many U.S. workers would be grateful if their employers also paid their income tax obligations,” writes Paul Hodgson of The Corporate Library in the report.
No comments yet.