Mon E. Bags, Chief Executive Officer of Earns A Lot Enterprises, received total compensation of $2,500,000.00 in 2017. The compensation included a base salary of $750,000, commission income of $1,250,000 and a performance bonus of $500,000. Mr. Bags’ compensation placed him in the top 25% of all chief executive’s in the industry.
Earns A Lot is located in State X. While the national economy has experienced an economic slowdown, State X has a strong and vibrant economy. Mr. Bags has been the chief executive officer for five years.
Earns A Lot, which has long had a reputation for paying very competitive salaries, recruited Mr. Bags from its chief rival, Wanna Be Industries. When Mr. Bags became the chief executive of Wanna Be, the company was on the verge of liquidation. Within five years, Mr. Bags took Wanna Be from the steps of oblivion to the top of the industry.
While Earns A Lot has a solid reputation of consistent top tier performance, it has long believed there was room for substantial growth and so hired Mr. Bags. Indeed, under Mr. Bags’ leadership, Earns A Lot has seen gross revenues grow by over 20% per year. Nonetheless, Earns A Lot is concerned whether the company will be able to deduct Mr. Bags’ 2017 compensation.
Will Earns A Lot be able to deduct Mr. Bags’ 2017 compensation?
Please write a memo answering this question, citing the appropriate authority.
An IRAC-style essay is appropriate for this assignment.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more