The Response of Deferred Executive Compensation to Changes in Tax Rates
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.
Published Versions
Aspen Gorry & Kevin A. Hassett & R. Glenn Hubbard & Aparna Mathur, 2015. "The response of deferred executive compensation to changes in tax rates," Journal of Public Economics, vol (). citation courtesy of 
The Response of Deferred Executive Compensation to Changes in Tax Rates, Aspen Gorry, Kevin A. Hassett, R. Glenn Hubbard, Aparna Mathur. in Personal Income Taxation and Household Behavior (TAPES), Gordon and Keuschnigg. 2016
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