The 1993 Revenue Reconciliation Act that limited employer deductions for executive compensation to $1 million of executive compensation may have contributed to the growth of executive compensation.

Question

Quizplus · Accepted Answer

The limitation on deductions led companies to offer more compensation in the form of stock options and other incentive-based pay, which contributed to the overall increase in executive compensation. However, other factors such as the increased complexity and globalization of companies also played a role in the growth of executive pay.

The 1993 Revenue Reconciliation Act That Limited Employer Deductions for Executive