All this is intended to do is show how easy it should be to legislatively cap executive comp for cash and other benefits (drivers, etc.) and make ALL VARIABLE AND PERFORMANCE-BASED COMP LOCKED UP until FIVE YEARS AFTER the executive leaves the company.
That's a disincentive to pursue short-term goals at the expense of the company's long-term performance and in incentive to act solely in the long-term interests of the company.
That's it. You can't do this with a tax.
But it’s meant to demonstrate how easy it should be in practice to effectuate, per the front page, the policy President Obama's administration is reportedly considering regarding regulation of executive compensation. Link to New York Times article.
Caveats and open invitations: this is not within my typical area of practice, so anybody who’s savvy with federal tax, securities, ERISA, etc., please feel to comment or correct.
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