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The continuing influence of government on compensation.

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Identify and describe the continuing influence of government on compensation practices.

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This solution identifies and discusses the continuing influence of government on compensation practices.

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This gets into a few different areas because the government has exerted so much control on compensation practices. One of the main areas is that the IRS has imposed regulations stating that the directors of corporations must receive reasonable compensation based on their involvement and activities with the corporation. This stops executives from claiming unreasonable compensation as to where it would put the company under, and also forces the director/officers to receive compensation, so that they can't not pay themselves (which is ...

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