WASHINGTON — Outlining its plan to curb runaway pay for corporate chieftains, the Clinton Administration on Thursday proposed giving shareholders a role in setting executive compensation.
But many forms of pay would not be affected by the Administration's policy of denying tax deductions for amounts in excess of $1 million that corporations pay executives.
The Treasury Department estimated that the plan would raise about $600 million over five years, compared to the $1.3 billion over four years that President Clinton projected last year in his campaign book "Putting People First." Congressional tax analysts reached a different conclusion in February, estimating that any effect on revenue would be "negligible."
Under current law, corporations can deduct multimillion-dollar executive pay packages from their income taxes as a business expense. Riding a wave of public outrage about some fat executive pay checks and stock option grants, Clinton has argued that the government should stop subsidizing pay of more than $1 million.