Author Archives: N. Bugra Ozel

Executive Compensation, Individual-Level Tax Rates, and Insider Trading Profits

By | October 21, 2020

Changes in individual-level tax rates represent exogenous shocks to executives’ net compensation. While these shocks may increase or decrease compensation, there is little evidence that firms respond by changing executives’ explicit compensation. One explanation is that executives bear the brunt of any tax rate change by directly reflecting these changes to their own compensation. Alternatively,… Read More »