Politico: “Eye-popping” payouts for CEOs follow Trump’s tax cuts

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Politico: “Eye-popping” payouts for CEOs follow Trump’s tax cuts

The consequences of the GOP’s tax scam are becoming clearer by the day. While workers’ wages have largely stagnated, corporate executives and shareholders continue to gain billions in profits.

It’s fundamentally unfair that those at the top are raking in billions while families are struggling to put food on the table.

That’s why we need to fight like hell to keep Sherrod in the Senate, where he stands up for all Ohioans—not just the wealthy few.

Politico: “Eye-popping” payouts for CEOs follow Trump’s tax cuts

Patrick Temple-West and Victoria Guida – July 30, 2018

Key points:

  • Some of the biggest winners from President Trump’s new tax law are corporate executives who have reaped gains as their companies buy back a record amount of stock, a practice that rewards shareholders.

  • Executives, who often receive most of their compensation in stock, have been profiting by selling shares since Trump signed the law on Dec. 22 and slashed corporate tax rates to 21%.

  • Public companies announced more than $600 billion in buybacks in the first half of this year—already toppling the previous annual record.

  • “Stock buyback announcements in the U.S. have swelled to the highest levels on record in the wake of last year’s corporate tax cut,” said TrimTabs Investment Research in a July 10 report. “Corporate America’s actions suggest that most of the benefits of the corporate tax cut will flow to investors in general and top corporate executives in particular.”

  • While more than two dozen companies announced one-time bonuses to employees after the tax bill, wage growth is still sitting at a lackluster 2.7%.

Read more here.