The Corporate World - Written by Beasley Allen on Thursday, October 6, 2011 11:09 - 0 Comments
Twenty-five of the 100 highest paid U.S. CEOs earned more last year than their companies paid in federal income tax, according to a study by the Institute for Policy Studies (IPS), a Washington think tank. The study also found many of the companies spent more on lobbying than they did on taxes. At a time when lawmakers are facing tough choices in a quest to slash the national debt, the report has some very interesting observations.
Rep. Elijah Cummings, ranking member of the Committee on Oversight and Government Reform, has called for hearings on executive compensation. In a letter to the committee’s chairman, Rep. Darrell Issa, Rep. Cummings asked “to examine the extent to which the problems in CEO compensation that led to the economic crisis continue to exist today.” He also asked “why CEO pay and corporate profits are skyrocketing while worker pay stagnates and unemployment remains unacceptably high,” and “the extent to which our tax code may be encouraging these growing disparities.” In putting together its study, IPS compared CEO pay to current U.S. taxes paid. The study made these findings:
• Compensation for the 25 CEOs with pay surpassing corporate taxes averaged $16.7 million, according to the study, compared to a $10.8 million average for S&P 500 CEOs. Among the companies topping the IPS list:
• eBay, whose CEO John Donahoe made $12.4 million, but which reported a $131 million refund on its 2010 current U.S. taxes.
• Boeing, which paid CEO Jim McNerney $13.8 million, sent in $13 million in federal income taxes, and spent $20.8 million on lobbying and campaign spending.
• General Electric, where CEO Jeff Immelt earned $15.2 million in 2010, while the company got a $3.3 billion federal refund and invested $41.8 million in its own lobbying and political campaigns.
Though the companies come from different industries, their tax breaks fall into two primary areas. Two-thirds of the firms studied kept their taxes low by utilizing offshore subsidiaries in tax havens such as Bermuda, Singapore and Luxembourg. The remaining companies benefited from accelerated depreciation. Shareholders have responded favorably when companies in which they invest keep a tax bill low through legal methods, thereby benefiting earnings.
According to Chuck Collins, an IPS senior scholar and co-author of the report, that is a mistake. He said that “it’s an exposure of weakness in a company if their profitability is dependent on their accounting department and not on making better widgets.” In prior reports, out-sized CEO pay was often a red flag of bigger problems to come. The IPS has been putting a pay report together for 18 years. Among those whose leaders have made the high pay list in years past, only to have their businesses falter, are Enron and WorldCom.
Source: Huffington Post
Leave a Reply
- Testosterone Multidistrict Litigation Has Been Formed
- Exploding Airbags is the Next Hidden Danger Lurking on the Horizon
- Favorite Bible Verses
- An Update on the Firm's Mass Torts Litigation
- The Civil Justice System Does Make a Difference
- BP's Stay Request Fails Before the Supreme Court
- Eight Car Makers Join in the Recall of Exploding Airbags
- The Deepwater Horizon Claims Program is Up and Running Again
- Favorite Bible Verses
- J&J Pays Oregon $4 Million To Settle Hip Implant Marketing Claims
- EPA Should Update Fracking Pollution Regulations
- Deepwater Fracking Raises Environmental Concerns
- $27.8 Million Settlement Finalized In TVA Coal Ash Spill
- Illinois Transport Company Settles Fatal Crash Suit For $2.7 Million
- Settlement For Family Of College Student Killed In Crash After Alabama National Championship Game
- Macy’s Fined $1 Million For Decapitation Of Warehouse Employee
- Texas Plastics Plant Fined $174,000 For Safety And Health Violations
- OSHA Says Safety Violation Continue At Oklahoma Oil Refinery
- Company Cited In Fatal West Virginia Cell Tower Collapse
- New Safety Directive Issued By OSHA On Communication Tower Work
- $27 Million Verdict Returned In Texas Against McDonald’s
- hello just want you a up date mt email change to
email@example.com can you...
- Was just wondering if you can still be in this lawsuit. I was a manager for 8 yr...
- I keep reading that the pratice of steering is illegal and whole-heartidly suppo...
- Hello William, thank you for your question. We are not aware of any pending liti...
- Has litigation commenced as a result of this recall?...
- Sorry I meant to say settlement papers, but I did speak to someone in the Lawyer...
- I just spoke to someone and was told it will be another month or two before I wi...
- 2005 F150 super cab. Driver side regulator just broke. Dealer wants $200 just fo...
Recent Settlements - Feb 9, 2012 7:09 - 0 Comments
More In Recent Settlements
- A Further Update On The AWP Litigation
- Firm Reaches Settlement In Fort McClellan Radio Tower Collapse Case
- Firm Reaches Settlement In Sikorsky Helicopter Crash
- The Philadelphia Story
- St. Croix, Virgin Islands Settlement
Product Liability - Sep 4, 2014 13:13 - 0 Comments
More In Product Liability
- More Problems With Goodyear RV Tires
- NHTSA Offers Online Vehicle Recall Check
- Class Action Lawsuit Filed Against Mazda For Engine Valve Defect
- GM Sued For Alleged Antifreeze Defect In Chevy Cruze Models
- Settlement By Kia And Hyundai In Fuel Efficiency MDL Is Approved
Recalls Update - Sep 4, 2014 11:03 - 0 Comments
More In Recalls Update
- USDA Recalls 7.5 Tons Of Applegate Frozen Chicken Nuggets
- J&J Unit Recalls Hysterectomy Device Over Cancer Fears
- Samson International Recalls Bar Stool Due To Fall Hazard
- Bexco Recalls Franklin & Ben Mason 4-in-1 Convertible Cribs Due To Fall And Entrapment Hazards
- Ace Bayou Bean Bag Chairs Recalled Because Of Suffocation And Choking Hazards