September 1, 2011 in Business, Nation/World

Report: Firms spent more on CEO pay than taxes

Boeing among 25 companies named

Associated Press

Twenty-five of the 100 largest U.S. corporations paid their chief executives more than they paid the government in federal income taxes last year, according to a report released Wednesday.

The nonprofit Institute for Policy Studies says the 25 CEOs averaged $16.7 million in salary and other 2010 compensation. Most of the companies they ran, meanwhile, came out ahead at tax time, collecting tax refunds that averaged $304 million, according to its review of public filings.

The 25 firms average global profits of $1.9 billion, the think tank said.

The institute, based in Washington, describes itself as a community of public scholars that works with social movements to promote democracy and challenge corporate influence and military power.

Among the firms it cited are International Paper Co., Prudential Financial Inc., General Electric Co., Verizon Communications Inc., Bank of New York Mellon Corp., Boeing Co., Marsh & McLennan Cos., Stanley Black & Decker Inc., Chesapeake Energy Corp. and eBay Inc.

Companies often pay different amounts in tax expenses than they report in financial statements, however. Actual tax payments do not have to be reported.

The report said Boeing paid U.S. federal income taxes of $13 million last year while paying CEO Jim McNerney $13.8 million.

Boeing said it paid far more than that in federal taxes and the $13 million that the institute cited is an accounting figure. It paid $360 million in federal, state and overseas taxes last year, with federal taxes accounting for most of it, according to company spokesman Charles Bickers.

He said that Boeing’s 2010 tax bill was reduced by payments to its pensions, state tax incentives for hiring workers and a $371 million credit on prior federal taxes paid after an audit was settled.

“Boeing adheres to the tax rules,” Bickers said. “We earn our revenue, record income and pay taxes here in the United States.”

11 comments on this story so far. Add yours!

drywitt99 on September 01 at 2:13 a.m.
B-b-b-but….if corporations are people, too…….as brother Romney claimed…..shouldn’t they pay the same tax rate (35%) as the wealthiest individuals…..and be limited to the same deductions???
DickAdams on September 01 at 7:58 a.m.
Seems to me, the story should have mentioned GE CEO who just recently Obama appointed to a key post. I suppose old folksy Warren Buffett, a huge stockholder of GE, called the shot and Obama was happy to oblige for services rendered.
Orphan on September 01 at 10:10 a.m.
They forgot to mention that the CEOs then paid income tax at the higest rate and or capitol gains on that income.
BigWaveDave on September 01 at 1:47 p.m.
What a misleading article. To check the info, I pulled up Boeing’s 2010 Form 10-K (financial statements) and its 2011 proxy statement. Total compensation (cash and stock) for the CEO for 2010 was $16 million. Total tax expense (current and deferred) was $1.1 billion (yes, with a B). Yes, current U.S. tax expense was only $13 million, but that is just one piece of total tax expense.
The author is intentionally misleading, and it does nothing but villify qualified CEO’s.
misjustice on September 01 at 6:57 p.m.
This is as it should be; the CEOs deserve the $$$$ the gubmint doesn’t. Corporations are people, my friends.
kkrimmer on September 01 at 7:35 p.m.
Tax Cuts Offer Most for Very Rich, Study Says
WASHINGTON — Families earning more than $1 million a year saw their federal tax rates drop more sharply than any group in the country as a result of President Bush’s tax cuts, according to a Congressional study.
http://tinyurl.com/ydk9tc
Wealth Gap Is Increasing, Study Shows
The rich really are getting richer and the poor are getting poorer, a new University of Michigan study shows. Rising inequality isn’t new. But what happened under Bush is something entirely unprecedented: For the first time in our history, so much growth is being siphoned off to a small, wealthy minority that most Americans are failing to gain ground even during a time of economic growth — and they know it.http://tinyurl.com/49jj89
Kleptocracy at work. Republican liassae faire doesn’t bode well for average Americans, only the rich.
The_Seer on September 01 at 7:49 p.m.
dickadams: Why do you obsess about Buffet? Why not mention the Koch brothers and their influence on D.C.?
I don’t care what CEO’s make. What I do care about is the bottom 50% of the earners in the U.S. living on 2.5% of all income.
http://www.businessinsider.com/15-charts-about-wealth-and-inequality-in-america-2010-4#half-of-america-has-25-of-the-wealth-2
The_Seer on September 01 at 7:55 p.m.
Take a look at all the charts contained in that link. It is obscene what we’ve allowed to happen in the U.S.
woamike on September 01 at 10:35 p.m.
Spotucky/EP/Seer,
The chart says “wealth”, not “income” and does not say how “wealth” is defined. Also, the source of this alleged “fact” is highly partisan (not that that bothers you). Was this simply an oversight on your part? Or, was it just (another) example of your propaganda?. . .
I don’t care what CEOs make either as long as they’re not sucking on the gov teet. I also don’t care what anyone else makes, unless they’re feeding at the trough. I also don’t give a rat’s about how much stuff my neighbor has.
Enough of the class warfare and politics of envy crap. Anyone in this country can make it - as long as the government doesn’t pick winners and losers or over-regulate your life.
P.S. What are you going to call yourself next?
mmspowaus on September 02 at 4:39 a.m.
The_Seer is plucky Spotucky?????
I thought he/she was dead…and very unlucky…
Good to see he/she is still alive…and deep in the mucky…
Now why did he/she change his / her name from Spotucky?
His/her understanding of supply and demand has not improved however…
I think Hollywood actors are highly overpaid and should be heavily taxed before they destroy themselves…oh wait, who are we to judge how much they get paid?
Shouldn’t it be supply and demand? They will work for as much as the market will pay them?
Isn’t it the same with CEOs? I mean I’ve seen some awful movies where the actor still got 20+ million dollars…CEO’s have made awful choices and still got their HUGE paycheck…
It’s called freedom baby, yeah…we all would like to be on the receiving end of the big paycheck…let’s not let petty envy get in the way destroying the free market…hmmmmmmmmmm
drywitt99 on September 02 at 5:28 a.m.
I don’t believe the thrust of the article had anything to do with the excessive** nature of CEO salaries (which are the responsibility of the stockholders…..and not the government); but rather…..that these corporations were significantly undertaxed.
**excessive: http://www.merriam-webster.com/dictionary/excessive