06/15/2017
In defending rollback of this part of Dodd-Frank, the author is inaccurate. Tax Code penalizes companies for compensation greater than $1 million by limiting deduction to corporation and imposing 20% excise tax on executive employee - unless pay is performance based. If performance compensation is structured as stock options, the executive isn't identically positioned as shareholders; the latter place capital at risk for the enterprise, option holders do not until they exercise. So excluding this portion from his calculations isn't appropriate.
http://fortune.com/2017/06/11/dodd-frank-repeal-vote-ceo-pay/
Irv Becker, vice chairman of Executive Pay & Governance at Korn Ferry, explains why CEOs aren't overpaid.