Tell Congress to Close the Wall Street CEO Tax Loophole
In 1993, Congress passed a law meant to rein in excessive CEO pay. But the new law left an unfortunate loophole for so-called “performance pay,” which has been exploited by Wall Street ever since.
Between 2012 and 2015, the top 20 U.S. banks paid more than $2 billion to their top five executives in fully tax-deductible performance pay, costing taxpayers $725 million.
Wells Fargo alone paid its recently fired CEO John Stumpf $155 million in performance pay during the time of the national scandal — costing taxpayers $54 million.
U.S. Senators Jack Reed (D-R.I.) and Richard Blumenthal (D-Conn.) and U.S. Rep. Lloyd Doggett (D-Texas) have proposed a fix — the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act (S. 1127/ H.R.2103) — to close this tax loophole and rein in abuses by financial firms.