Option ploys spark calls to repeal law

Congress rues effects of bid to limit top pay

September 07, 2006|By Jonathan Peterson | Jonathan Peterson,Los Angels Times

WASHINGTON -- Members of Congress said yesterday that they may seek to repeal a measure that was meant to put a lid on executive pay but may have instead triggered ever-richer stock option deals.

At issue is a 1993 tax provision that barred companies from deducting salaries above $1 million as a business expense unless they were tied to performance. In response, many companies curtailed executive salaries and made up the difference with the stock option grants that are at the heart of an unfolding controversy.

Jonathan Peterson writes for the Los Angeles Times. Times reporter Kathy Kristof contributed to this article.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.