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The awkward truth about CEO pay

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  • Rafi Hossain

Abstract

This paper is the first of its kind using the variation in state corporate tax rates to investigate if they have any explanatory power in predicting variations in CEO pay. Specifically, this paper allows us to shed light on whether corporate tax cuts boost CEO pay? This paper, by using a difference-in-difference (DID) set up over the period 1994 to 2015, finds that corporate tax cuts statistically affect CEO pay among all publicly traded firms in the US. The magnitude of the effect increases among the S&P 500 and S&P 100. The paper further presents some interesting findings using three different measures of executive compensation.

Suggested Citation

  • Rafi Hossain, 2022. "The awkward truth about CEO pay," Applied Economics Letters, Taylor & Francis Journals, vol. 29(5), pages 376-379, March.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:5:p:376-379
    DOI: 10.1080/13504851.2020.1869154
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