New research finds that corporate executives are more likely to increase their profits from insider trading when individual state income taxes go up, presumably because the executives are attempting to offset the increased taxes they will be paying.
Tag: Executive Compensation
Tax Cuts and Jobs Act did little to affect executive pay, counter to what Congress intended
Through the Tax Cuts and Jobs Act of 2017, Congress attempted to curb CEO pay by repealing a long-standing exemption that allowed companies to deduct large amounts of qualified performance-based pay. New research finds the change has had little effect, with CEO pay either staying the same or growing after the law made it more costly to award executives with high levels of compensation.