The Taxation of Executive Compensation

Over the past 20 years, there has been a dramatic increase in the share of executive compensation paid through stock options. In this paper, we examine the extent to which tax policy has influenced the composition of executive compensation, and discuss the implications of rising stock-based pay for tax policy. We begin by describing the tax rules for executive pay in detail and analyzing how changes in various tax rates affect the tax advantages of stock options relative to salary and bonus. Our empirical analysis leads to three conclusions. First, there is little evidence that tax changes have played a major role int the dramatic explosion in executive stock option pay since 1980. Although the tax advantage of options has approximately dounbled since the early advantage of options has approximately doubled since the early 1980s options currently have only a slight tax advantage relative to cash - approximately $4 per$100 of pre-tax compensation to the executive. A more convincing story for the dramatic explosion in stock options involves changes in corporate governance and the market for corporate control. For example, there is a strong correlation between the fraction of shares held by large institutional investors and the fraction of ececutive pay in the form of stock options, a result that holds both longitudinally and cross-sectionally. Second, we find evidence that the million dollar rule (which limited the corporate deductibility of non-performance-related executive compensateion to $1 million) led firms to adjust the composition of their pay away from salary and toward "performance related pay," although our estimates suggest that substitution was minor. We find no evience that the regulation decreased the level of total compensation. Third, we examine whether there is evidence for significant shifting of the timing of option exercieses in response to changes in tax rates. After replicating the Goolsbee (1999) result regardin tax-shifting with our data for the 1993 tax reform, we show that no such shifting occurred in either of the two tax reforms of the 1980s. Moreover, we find evidence that much of the unusually large level of option exercises in 1992 was the result of the rising stock market rather than the change in marginal tax rates.

The heats of formation of the haloacetylenes XCCY [X, Y = H, F, Cl]: basis set limit ab initio results and thermochemical analysis

The heats of formation of haloacetylenes are evaluated using the recent W1 and W2 ab initio computational thermochemistry methods. These calculations involve CCSD and CCSD(T) coupled cluster methods, basis sets of up to spdfgh quality, extrapolations to the one-particle basis set limit, and contributions of inner-shell correlation, scalar relativistic effects, and (where relevant) first-order spin-orbit coupling. The heats of formation determined using W2 theory are: \hof(HCCH) = 54.48 kcal/mol, \hof(HCCF) = 25.15 kcal/mol, \hof(FCCF) = 1.38 kcal/mol, \hof(HCCCl) = 54.83 kcal/mol, \hof(ClCCCl) = 56.21 kcal/mol, and \hof(FCCCl) = 28.47 kcal/mol. Enthalpies of hydrogenation and destabilization energies relative to acetylene were obtained at the W1 level of theory. So doing we find the following destabilization order for acetylenes: FCCF $>$ ClCCF $>$ HCCF $>$ ClCCCl $>$ HCCCl $>$ HCCH. By a combination of W1 theory and isodesmic reactions, we show that the generally accepted heat of formation of 1,2-dichloroethane should be revised to -31.8$\pm$0.6 kcal/mol, in excellent agreement with a very recent critically evaluated review. The performance of compound thermochemistry schemes such as G2, G3, G3X and CBS-QB3 theories has been analyzed.Comment: Mol. Phys., in press (E. R. Davidson issue

What Can We Learn about Neighborhood Effects from the Moving to Opportunity Experiment?

Experimental estimates from Moving to Opportunity (MTO) show no significant impacts of moves to lower‐poverty neighborhoods on adult economic self‐sufficiency four to seven years after random assignment. The authors disagree with Clampet‐Lundquist and Massey's claim that MTO was a weak intervention and therefore uninformative about neighborhood effects. MTO produced large changes in neighborhood environments that improved adult mental health and many outcomes for young females. Clampet‐Lundquist and Massey's claim that MTO experimental estimates are plagued by selection bias is erroneous. Their new nonexperimental estimates are uninformative because they add back the selection problems that MTO's experimental design was intended to overcome.Economic

Visual Encoding of Dissimilarity Data via Topology-Preserving Map Deformation

We present an efficient technique for topology-preserving map deformation and apply it to the visualization of dissimilarity data in a geographic context. Map deformation techniques such as value-by-area cartograms are well studied. However, using deformation to highlight (dis)similarity between locations on a map in terms of their underlying data attributes is novel. We also identify an alternative way to represent dissimilarities on a map through the use of visual overlays. These overlays are complementary to deformation techniques and enable us to assess the quality of the deformation as well as to explore the design space of blending the two methods. Finally, we demonstrate how these techniques can be useful in several—quite different—applied contexts: travel-time visualization, social demographics research and understanding energy flowing in a wide-area power-grid

What Happens When Mediation is Institutionalized?: To the Parties, Practitioners, and Host Institutions

The Alternative Dispute Resolution Section of the Association of American Law Schools presented a program, at the 1994 AALS Conference, on the institutionalization of mediation – through courtconnected programs and otherwise. The topic is an important one, because this phenomenon has become increasingly common in recent years. Moreover, the topic seemed especially appropriate for the 1994 program, since Florida – the host state for the conference – was one of the first states to adopt a comprehensive statute providing for court-ordered mediation (at the trial judge\u27s option) in civil disputes of all kinds. The move toward institutionalizing mediation has raised many questions, and this program was designed to highlight those questions, and provoke this discussion about them. The panel for the program was composed of mediation scholars, teachers and practitioners, from eight diverse jurisdictions around the country, with expertise on many different aspects of the institutionalization issue. The program was organized by Professor Baruch Bush (Program Chair), together with Professor Carol Liebman (Section Chair) and Dean James Alfini (Panel Moderator). This article presents an edited transcript of the panelists\u27 comments

Multi-objective optimization for the National Ignition Facility's Gamma Reaction History diagnostic

Abstract not provide