At the Top of the Pay Scale
A Jan. 24 article titled "
Exec pay takes no hit," said, "Federal tax laws no longer allow companies to deduct salaries in excess of $1 million per year from their corporate tax returns."
However this limitation relates only to compensation that is not performance-based. In addition, the ruling applies only to the top officers of publicly traded companies. Therefore, private and foreign-owned companies are not covered by this provision, unless they are subject to Securities and Exchange Commission regulations.
PAUL DORF
Upper Saddle River, Jan. 24
The writer is the managing director of Compensation Resources Inc., a consulting firm.
