Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (1) do you recommend that, to deal with unforeseen

(1) Do you recommend that, to deal with unforeseen circumstances, the board of directors be...

60.1K

Verified Solution

Question

Accounting

image

(1) Do you recommend that, to deal with unforeseen circumstances, the board of directors be granted the discretion to pay the CEO a cash bonus, even if the quantitative measures were not satisfied? Yes or No WHY? Previously, CEO salary was tax deductible up to $1 million, and bonus in excess of $1 million was tax deductible if linked to firm performance. Therefore, CEO salary was commonly limited to $1 million. Now, all compensation in excess of $1 million is non-tax deductible and firms have no tax incentive to link the CEO's bonus to firm performance. (2) Do you believe that firms are going to generally increase CEO salary and provide less bonus? or No Yes_ (3) Do you believe that the federal government made a good choice by eliminating the tax deduction for performance-based compensation in excess of $1 million? Yes _ or No (4) Do you believe that firms can use the performance-measures to influence executive behavior? Yes or No o r Not sure

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students