Are tax gross-ups a “perk”?

For purposes of the proxy statement filed with the SEC, are tax-gross ups a perk?

It’s a perk.

A gross-up is that you increase an executive’s gross pay so that the boost covers the taxes the company withheld from the executive’s pay. In other words, the company is paying the executive’s taxes.

Your reaction to that is what institutional investors & proxy advisors felt – so they have been disfavored as an egregious perk and the practice has steeply declined.

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