Top of the Morning

Top of the morning

A recent Bailout Watch from Consumer Reports focuses on another aspect of the ridiculous executive compensation packages that corporate America takes for granted, the tax gross-ups.

Companies not only shower CEOs with tens of millions in pay and fringe benefits, like personal use of the corporate jets, they even pay the taxes owed on the compensation packages.

Key Corp, which owns small banks in 14 states, paid its chairman and chief executive officer Henry L. Meyer an additional $2,912 for the taxes he owed because the company paid his country club dues.  Meyer also was reimbursed for the taxes due because the company paid for the security system on his home.

As Bailout Watch put it.

Given that Meyer’s total compensation in 2008 was $4.9 million, coming up with cash on his own to pay those income tax obligations might be a tad less challenging than it would be for most Americans.

Just a tad.

2 Comments


  1. AdamL

    April 13, 2009 at 9:32 am

    As Slate wrote: “This tax buy-off is known as a ‘gross up’ because beneficiaries receive ‘gross’ pretax sums rather than net post-tax sums — although it is also well-named because of the reaction it provokes in shareholders: a pressing need to vomit.”

  2. Eugene Barufkin

    April 14, 2009 at 12:44 am

    Tax all personal income above one million at 50%.
    25% Federal and 25% State.

Check Also

Two paragraphs that sum up Trump’s attitude toward protecting the environment

The first two paragraphs of a New York ...

Top Stories from NCPW

  • News
  • Commentary

A key House committee signed off on the chamber’s public school budget report Thursday, despite Demo [...]

Harold Brubaker, the former Republican House Speaker turned powerful lobbyist, tried to ram through [...]

A bill to limit local regulation of small cell towers is moving to a full House vote, despite concer [...]

The U.S. Supreme Court ruled Monday that the North Carolina GOP drew unconstitutionally racially ger [...]

The most shameful thing about the disastrous budget passed by the Senate two weeks ago is not the vi [...]

Court setbacks, public opinion, progressive activism and Trump bode ill for NC conservatives Profess [...]

So, the question as always comes down to one of vision. The elected chieftains who decide how much m [...]

2.8 billion---amount in dollars of needs in communities across the state for rebuilding efforts from [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more