Chart: Components of the compensation package

	Tax Status
Compensation component	Executive	Firm
Salary	Taxable	Deductible subject to $1 million cap
Bonuses	Taxable	Deductible subject to $1 million cap
Non-equity incentive plan	Taxable	Likely to be fully deductible
Stock grants	Taxable	Deductible subject to $1 million cap
Stock options	Taxable	Likely to be fully deductible
Stock appreciation rights	Taxable	Likely to be fully deductible
Pension and deferred compensation	Taxable	If deferred to after retirement likely to be fully deductible
Other compensation	Taxable	Deductible subject to $1 million cap