Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5101801 | Journal of Public Economics | 2017 | 13 Pages |
Abstract
Given the increasing use of stock options in executive compensation, we examine how taxes influence the choice of compensation and document that income deferral is an important margin of adjustment in response to tax rate changes. To account for this option in the empirical analysis, we explore deferral by estimating how executives' choice of compensation between current and deferred income depends on changes in tax policy. Our empirical results suggest a significant impact of taxes on the composition of executive compensation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Aspen Gorry, Kevin A. Hassett, R. Glenn Hubbard, Aparna Mathur,