Left-Leaning Institute for Policy Studies found that 26 big U.S. companies, including Boeing, AT&T and Citigroup paid their CEOs more than they paid in federal taxes.
Yahoo Finance: Twenty-six big U.S. companies paid their CEOs more last year than they paid the federal government in tax, according to a study released Thursday by a liberal-leaning think tank.
The study, by the Institute for Policy Studies, said the companies, including AT&T, Boeing and Citigroup, paid their CEOs an average of $20.4 million last year while paying little or no federal tax on ample profits, according to regulatory filings.
On average, the 26 companies generated net income of more than $1 billion in the U.S., the study said.
The study blasted tax rules allowing unlimited deductions for CEO “performance-based” pay, like many stock options. It said the five biggest performance payers among the 26 companies took $232 million of these deductions last year.
Here’s an excerpt from the study results:
- Of last year’s 100 highest-paid U.S. corporate chief executives, 26 took home more in CEO pay than their companies paid in federal income taxes, up from the 25 we noted in last year’s analysis. Seven firms made the list in both 2011 and 2010.
- The CEOs of these 26 firms received $20.4 million in average total compensation last year. That’s a 23 percent increase over the average for last year’s list of 2010’s tax dodging executives
- The four most direct tax subsidies for excessive executive pay cost taxpayers an estimated $14.4 billion per year—$46 for every American man, woman, and child. That amount could also cover the annual cost of hiring 211,732 elementary-school teachers or creating 241,593 clean-energy jobs.
- CEOs have benefited enormously from the Bush tax cuts for upper-income taxpayers. Last year, 57 CEOs saved more than $1 million on their personal income tax bills, thanks to these Bush-era cuts.
Read the full report: Executive Excess 2012: The CEO Hands in Uncle Sam’s Pocket (PDF)