We often hear of the salaries paid to top executives of companies that have average or below average financial performance. We cannot control what the compensation committees of these companies choose to give the executives, but we can control how much of it that they get to keep. A taxation rate for executives based upon salary and long term corporate performance could be considered. For example, if a chief executive is paid $5 million for a year, $4 million could be deferred for 5 years. If the corporation performs well during this period, full payment is made; if not, the taxpayers get paid.
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