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TAX BILL TAKES AIM AT EXECUTIVE COMPENSATION, BILL WILL CAP CORPORATE TAX DEDUCTIONS FOR PRICEY CEOS, GIVE SHAREHOLDERS MORE POWER

 RIVERWOODS, Ill., June 24 /PRNewswire/ -- The editors at Commerce Clearing House (CCH), the leading tax law publisher, have noted that public debate over Executive Compensation has worked its way into various versions of the 1993 tax legislation.
 In current House and Senate versions of the tax bill, publicly- traded corporations will be denied a business deduction for Executive Compensation -- primarily salary and benefits -- exceeding $1 million. The bills define those affected as the chief executive officer and the next four highest compensated officers in a company.
 "Executive Compensation is a high profile issue and shareholders in particular have been very vocal when CEOs receive compensation that appears to outpace their corporation's performance," said Martin Bush, managing editor, Federal Tax Reporting Group, CCH. "The legislation could push corporations to tie executive pay more closely to performance and give independent shareholders more control over setting performance goals."
 In both bills before the House and Senate, the deduction limitation would apply to compensation for services and the cash value of other remuneration, such as benefits.
 A closer look at the details seems to indicate Congress is stressing pay for performance, according to Bush.
 "The proposed legislation excludes certain types of compensation. For example, dollars paid to executives who meet one or more performance goals is not taken into account when determining corporate deductions," said Bush. "However, it lays out strict guidelines for how those performance goals will be set, allowing independent shareholders and outside directors to play a major role in determining those goals."
 Other compensation that won't be taken into account includes: compensation paid in the form of commissions directly related to individual performance, payments to a tax-qualified retirement plan and amounts excludable from the executive's gross pay, such as employer- provided health benefits.
 Commerce Clearing House is the leading publisher of tax and business law information. Among the 300 publications published annually by its 1,200-person editorial staff is Tax Day, Standard Federal Tax Reporter and U. S. Master Tax Guide. In addition, the company continually tracks and publishes -- within 24 hours -- tax legislation from the house and senate.
 -0- 6/24/93
 /NOTE TO EDITOR: CCH Federal Tax Law Editor Martin Bush, an attorney and CPA, is an expert in federal tax law and available for interviews on a limited basis. For more information call the contact below./
 /CONTACT: Mary Dale Walters, 312-463-0074, ext. 2038, or Jean Nies-Blackwell, 312-463-0074, ext. 2294, both of Commerce Clearing House/
 (CCLR)


CO: Commerce Clearing House ST: Illinois IN: PUB SU:

MP -- NY042 -- 5315 06/24/93 12:23 EDT
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Publication:PR Newswire
Date:Jun 24, 1993
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