The response of deferred executive compensation to changes in tax rates

• 成果类型: Article; Proceedings Paper
• 署名作者: Gorry, Aspen; Hassett, Kevin A.; Hubbard, R. Glenn; Mathur, Aparna
• 署名单位: Utah System of Higher Education; Utah State University; American Enterprise Institute for Public Policy Research; Columbia University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.08.003
• 发表日期: 2017
• 页码: 28-40
• 关键词: Deferred income; Executive compensation; Tax policy; Elasticity of taxable income

摘要

Given the increasing use of stock options in executive compensation, we examine how taxes influence the choice of compensation and document that income deferral is an important margin of adjustment in response to tax rate changes. To account for this option in the empirical analysis, we explore deferral by estimating how executives' choice of compensation between current and deferred income depends on changes in tax policy. Our empirical results suggest a significant impact of taxes on the composition of executive compensation. (C) 2015 Elsevier B.V. All rights reserved.