Tax Law Regulations Mechanism On Executive Compensation

While taxation schemes,such as bonus tax, issued by countries like Britain and the United States as effective tools to regulate the executives' excessive remuneration after the financial crisis in 2008 have played a positive role in economy, they have also brought some negative influences. This thesis begins with an introduction of the background of executive compensation mechanism and tax law system in China. Based on the effectiveness of American compensation restraints of tax code, the author will analyze how to put tax regulation into full use, and propose a taxation scheme to regulate the executives' unreasonable compensation in order to improve the social distribution system.This article can be divided into three parts. The first part, which is the first chapter, mainly introduces the concept and content of executive compensation and tax regulation. By describing the bonus tax law of the Europe and the United States under the financial crisis, the second part, including the second, the third and the fourth chapters, analyzes the necessity, feasibility of executive compensation regulation and discusses how to make full use of tax law. The third part, which is the fifth chapter, proposes a taxation scheme and suggestions to improve this taxation scheme by comparing the shortness of tax law system in China and advanced experience at abroad. That is, China should adopt a tax scheme that incorporates restraints, motivations and restrictions in order to improve the relevance between executive compensation and performance, which will, in turn, put tax regulation into full use and narrow the income gap.