CEO, Clinton, Tax Policy discussed on Masters in Business - Duff McDonald: How To Fix the Broken Elite Institutions


About how a clinton tax oh yeah basically changed the dynamics of co compensation and lead to people saying all right let's kim lot of stock options cassette doesn't cost us any i talked about that in the in the gold ask passport to as uh one of the greatest examples of unintended consequences ever they tried to put a cap on ceo pay cash pay cash pay was it like a million galleon ten million and above that the taxes became onerous right so what two things happened from that one is a average ceo pay was not ten million at the time but it quickly can i urged on short million and stock options so which came a norm which became enormous so now wellintentioned move by clinton up blew up in a you know the countries face so you have the tax policy and then on top of everything else you have the faz be accounting that basically says well stock options really aren't a cost you know just because you have to actually go out and buy it in the market doesn't mean it's a cost to the show and if they are you should you might be able to repress them any way rafter the fatso it so that was just one of those things in when people look at how ceo pay as run away that's one factor but there has to be the consultants or one things that the tax changes is something else the count and treatment is something else any other fact eight bs mi lay some blame at their doorstep a for helping a be build the ceo fame machine rights so the case method is teaches us from the perspective of the ceo what would you do how would you save this company you you you gray and then a foiled and magazine can mckenzie harvard.

Coming up next