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

NC Policy Watch captures six awards from NC Press Association

NC Policy Watch won six awards this year ...

Top Stories from NCPW

  • News
  • Commentary

Conference comes a day after new report lauds benefits of same-day registration The new line-up for [...]

North Carolina’s largest public school system may be warning of “enormous disruptions” without speed [...]

Carol Turner hadn’t lived in North Carolina long before last November’s election. A retired nurse, s [...]

Controversy over class-size requirements in early grades has emerged as the biggest issue facing Nor [...]

The wisdom of the plan by Senate leaders to cut taxes by $839 million was called into question this [...]

Several years of tax cuts have not fixed our economic problems, and more of the same won’t either In [...]

Progress on “second chance” agenda marks a rare positive development in state policy wars There are [...]

24 million---the number of people in the United States who would lose health care coverage by 2026 u [...]

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