Thursday, December 05, 2013

Tweet

[IWS] IPS: FAST FOOD CEOs RAKE IN TAXPAYER-SUBSIDIZED PAY [2 December 2013]

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

 

Institute for Policy Studies (IPS)

 

FAST FOOD CEOs RAKE IN TAXPAYER-SUBSIDIZED PAY [2 December 2013]

http://www.ips-dc.org/files/6511/IPS-Fast-Food-CEOs.pdf

[full-text, 6 pages]

 

Contents

Taxpayer Subsidies for CEO Pay in the Fast Food Industry……………………………… 1

Ending Taxpayer Subsidies for Excessive Executive Pay ………………………………… 3

Appendix: Methodology……………………………………………………………..……… 4

 

Press Release 2 December 2013

Fast Food CEOs Rake in Taxpayer-Subsidized Pay

A new report reveals that fast food companies are pocketing massive taxpayer subsidies for CEO pay while working to keep low-level workers' wages so low that many must rely on public assistance.

http://www.ips-dc.org/reports/fast-food_ceos_rake_in_taxpayer-subsidized_pay

 

These CEO pay subsidies are the result of a loophole that allows firms to deduct unlimited amounts from their income taxes for the cost of stock options, certain stock grants, and other forms of so-called “performance pay” for top executives. Put simply: the more corporations pay their CEOs, the less they pay in federal taxes. And ordinary taxpayers wind up footing the bill.

 

During the past two years, the CEOs of the top six publicly held fast food chains pocketed more than $183 million in fully deductible "performance pay," lowering their companies’ IRS bills by an estimated $64 million.

 

YUM! Brands enjoyed the biggest taxpayer subsidy for its CEO pay largesse. This firm, which owns Taco Bell, KFC, and Pizza Hut, paid CEO David Novak $94 million in fully deductible “performance pay” over the years 2011 and 2012. That works out to a $33 million taxpayer subsidy to YUM! – just for one executive’s pay.

McDonald’s received the second-largest government handout. As CEO in 2011 and the first half of 2012, James Skinner pocketed $31 million in exercised stock options and other fully deductible “performance pay.” Incoming CEO Donald Thompson took in $10 million in performance pay in his first six months on the job. Skinner and Thompson’s combined performance pay translates into a $14 million taxpayer subsidy for McDonald’s.

 

 

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 




Links to this post:

Create a Link



<< Home

This page is powered by Blogger. Isn't yours?