A publicly held corporation is denied a deduction for compensation paid to its chief executive officer,its chief financial officer and its three highest compensated officers if the compensation amount for any individual exceeds $1,000,000 per year.

Question

Quizplus · Accepted Answer

This is true under Section 162(m) of the Internal Revenue Code. There are exceptions, such as compensation that is performance-based, but in general, publicly held corporations cannot deduct compensation over $1 million for certain executives.

A Publicly Held Corporation Is Denied a Deduction for Compensation