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The CEO is paying higher taxes than the corporation. (You limited it to salary.) So in your example no, more taxes actually.
by tertius 8y ago
The CEO is paying higher taxes than the corporation. (You limited it to salary.)
So in your example no, more taxes actually.
- TylerE 8y agoWouldn't that depend on the actual compensation? If it's mostly stock there are all kinds of capital gain games that can be played, no?
- tertius 8y agoYes, long term capital gains tax is lower than corporate tax. But you limited it to salary not compensation. When we talk about compensation we need to start talking about things like golden handcuffs or parachute. Things linked to performance etc. But corporate taxes also need to be kept in context. If I'm not "allowed" to pay my CEO a lot (which means he/she may leave) then I'll spend the money otherwise to reinvest etc. (A la Amazon). Is that "wrong" as well?