A number of large U.S. corporations spent more on executive compensation than federal income taxes in 2013, according to a recent analysis by the Institute for Policy Studies and the Center for Effective Government.
Seven out of the 30 largest U.S. corporations examined for the "Fleecing Uncle Sam" report -- including Boeing Co., Ford Motor Co., Chevron Corporation, CitiGroup Inc., Verizon Communications, JPMorgan Chase & Co. and General Motors Co. -- spent $121 million on total compensation for their seven CEOs in 2013. On average, that's $17.3 million per CEO.
The seven firms reported over $74 billion in combined U.S. pre-tax income in 2013, but they collectively raked in nearly $1.9 billion in U.S. corporate income tax refunds that year. As such, the average effective tax rate in 2013 for the seven corporations was negative 2.5 percent, the analysis found.
"If the seven giant, highly-profitable corporations that paid their CEOs more than Uncle Sam had paid the full statutory corporate tax rate of 35 percent, they would've owed $25.9 billion in federal taxes," the report states. "Instead they received $1.9 billion in refunds, for a total difference of $27.8 billion."