Seven of the nation’s 30 largest corporations paid their chief executives more than they paid in U.S. federal income taxes in 2013, according to a new study by the Center for Effective Government and the Institute for Policy Studies.
The seven companies, which reported $74.4 billion in pre-tax income in 2013, avoided paying any federal income taxes last year. If these companies had paid corporate taxes at the full statutory rate of 35%, they would have owed the federal government $25.9 billion in taxes.
The seven companies—Boeing Co., Ford Motor Co., Chevron Corp., Citigroup, Verizon Communications Inc., JPMorgan Chase & Co. and General Motors Co.—paid their CEOs a total of $121 million in 2013. James McNerney Jr., Boeing’s CEO, received the biggest pay package—$23.3 million.
Ironically, these companies received $27 billion in subsidies from taxpayers, the authors of the study noted. The study recommends that lawmakers should focus on cracking down on the use of tax havens, eliminating wasteful corporate subsidies, and closing loopholes that encourage companies to pay out excessive executive compensation.