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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...
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.
The study said deductions and credits are allowing companies to lavish big pay packages on executives so they can cut their tax bills while Washington gets less money in a time of trillion-plus deficits.
On average, the 26 companies generated net income of more than $1 billion in the U.S.
CEO James McNerney Jr. of Boeing got $18.4 million in pay last year while his company received a tax refund of $605 million.
Citigroup paid CEO Vikram Pandit $14.9 million while the bank received a net $144 million in tax benefits. A Citigroup spokeswoman noted that the company lost money in 2008 and 2009...
To calculate tax, the study used companies' own math based on accounting rules.
Regulators require companies to estimate their tax bill and disclose it in public documents for investors.
The study doesn't count tax the company plans to pay but has deferred to future years.
In addition to performance-pay deductions and R&D credits, the report criticized the use of tax havens that allow technology companies, for instance, to assign intellectual-property rights to shell companies in the Cayman Islands, so they can run profits through them and avoid taxes.
26 companies have a combined 537 subsidiaries in tax-haven countries.
http://www.omaha.com/article/20120816/AP09/308169979
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.
The study said deductions and credits are allowing companies to lavish big pay packages on executives so they can cut their tax bills while Washington gets less money in a time of trillion-plus deficits.
On average, the 26 companies generated net income of more than $1 billion in the U.S.
CEO James McNerney Jr. of Boeing got $18.4 million in pay last year while his company received a tax refund of $605 million.
Citigroup paid CEO Vikram Pandit $14.9 million while the bank received a net $144 million in tax benefits. A Citigroup spokeswoman noted that the company lost money in 2008 and 2009...
To calculate tax, the study used companies' own math based on accounting rules.
Regulators require companies to estimate their tax bill and disclose it in public documents for investors.
The study doesn't count tax the company plans to pay but has deferred to future years.
In addition to performance-pay deductions and R&D credits, the report criticized the use of tax havens that allow technology companies, for instance, to assign intellectual-property rights to shell companies in the Cayman Islands, so they can run profits through them and avoid taxes.
26 companies have a combined 537 subsidiaries in tax-haven countries.
http://www.omaha.com/article/20120816/AP09/308169979