Do Ceos Respond To Favorable Tax Treatment Of Stock Options?
) (William Patterson University) Tricia Coxwell Snyder (William Patterson University) Abstract CEO stock option compensation increased tremendously during the 1990s. During this period, the spread between the marginal income and capital gains tax rates increased substantially, creating the potential for tax avoidance. Using ExecuComp data from 1992-2000, we estimate CEOs’ responsiveness to changes in these tax rates. Our findings show that an increase in the marginal income and a decrease in the capital gains tax rate create a significant increase in stock option compensation. Furthermore, the impact of the marginal income tax rate is more than twice that of the capital gains tax rate, which contradicts previous studies. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that t
Related Questions
- Can I receive favorable tax treatment if I use my HSA to pay for qualified medical expenses incurred before I set up my HSA?
- Now that dividends receive favorable tax treatment, how do you feel about the possibility of declaring a dividend?
- How does employer-provided adoption assistance qualify for favorable tax treatment?
