TY  - JOUR
AU  - Gorry, Aspen
AU  - Hassett, Kevin A
AU  - Hubbard, R. Glenn
AU  - Mathur, Aparna
TI  - The Response of Deferred Executive Compensation to Changes in Tax Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 21516
PY  - 2015
Y2  - September 2015
DO  - 10.3386/w21516
UR  - http://www.nber.org/papers/w21516
L1  - http://www.nber.org/papers/w21516.pdf
N1  - Author contact info:
Aspen Gorry
John E. Walker Department
of Economics
Clemson University
228 Sirrine Hall
Clemson, SC 29631
E-Mail: aspen.gorry@gmail.com

Kevin Hassett
American Enterprise Institute
1150 Seventeenth Street, N.W.
Washington, DC 20036
E-Mail: khassett@aei.org

R. Glenn Hubbard
Graduate School of Business
Columbia University, 607 Uris Hall
3022 Broadway
New York, NY  10027
Tel: 212/854-3493
Fax: 212/864-6184
E-Mail: rgh1@columbia.edu

Aparna Mathur
American Enterprise Institute
Eisenhower executive office building
Washington, DC 20036
E-Mail: Aparnamath@gmail.com
M1  - published as Aspen Gorry, Kevin A. Hassett, R. Glenn Hubbard, Aparna Mathur. "The Response of Deferred Executive Compensation to Changes in Tax Rates," in Roger Gordon and Christian Keuschnigg, organizers, "Personal Income Taxation and Household Behavior (TAPES)" Elsevier, Journal of Public Economics, Volume 151 (2016)

AB  - Given the increasing use of stock options in executive compensation, we examine how taxes influence the choice of compensation and document that income deferral is an important margin of adjustment in response to tax rate changes. To account for this option in the empirical analysis, we explore deferral by estimating how executives’ choice of compensation between current and deferred income depends on changes in tax policy. Our empirical results suggest a significant impact of taxes on the composition of executive compensation.
ER  -