How Some CEOs Cheat Their Way To Higher Pay

(Related to this previous post.)

Because executive compensation in the form of stock is tax-deductible for companies under a 1993 law, and much of the performance-based compensation executives draw is paid in stock, such gaming of performance targets ends up hurting taxpayers. Economist and former Labor Secretary Robert Reich said taxpayer losses due to manipulating performance targets are measured in the billions of dollars.


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