Posts tagged with: CPA

The 2013 “CPA-Zicklin Index of Corporate Policy Accountability and Disclosure” was issued Tuesday by the allegedly “nonpartisan” Center for Corporate Political Accountability – the “CPA” of the report’s title lest readers mistakenly read it as the objective analysis of a certified public accountant. The CPA referenced here is the organization operated by Bruce Freed, which shepherds proxy shareholder resolutions by left leaning “religious” shareholder activist groups as As You Sow and the Interfaith Council on Corporate Responsibility.

I haven’t taken the time for a deep-dive analysis of the report, but will do so most assuredly in the next few days. However, an initial reading of the Index’s Executive Summary must suffice for the moment. In short … poppycock. And piffle. Even preposterous.

Allow me to set the record straight. Ten years ago, CPA “began engaging corporations to voluntarily provide disclosure and oversight of political spending,” asserts Mr. Freed – if by “voluntarily” Mr. Freed means mounting a campaign of deceit against corporate political spending employing all means necessary to embarrass or otherwise shame companies to bend to the will of leftist, post-Citizens United, “corporations/bad. unions/good” ideology.

Mr. Freed and the faith-based shareholders for whom he writes proxy resolutions remain in a tizzy regarding those companies that spend lobbying or other political cash on causes and campaigns with which the left disapproves. In an environment of growing Leviathan and concomitant increase in regulatory restrictions emanating from government agencies, companies have little choice to ensure their own and employees’ survival as well as the profitability of shareholders than to engage in the political process. Indeed, to voluntarily withdraw from these policy debates would be nothing less than reckless disregard for political reality today.

So let’s break this down further: Unions spend members’ dues on political causes that tilt left whereas corporations spend company proceeds on causes that tilt right. Union spending rarely is called into question as it’s a given they’ll spend it on liberal candidates and agendas. Woe be unto those corporations, however, which endeavor to engage politically – even  privately – in the interest of their companies, employees, customers and shareholders. (more…)

There was a good deal of discussion in the media over “unfair” executive compensation, especially in light of the bonuses, golden parachutes, and other forms of remuneration received by CEOs during the bailout.

I have yet to hear much complaint about CEOs being underpaid, though.

But this might change as it becomes apparent that under-compensation of executives might well be a way to wriggle out of higher payroll tax liability. Consider the case of CPA David Watson, who “incurred the wrath of the IRS by only paying himself $24,000 a year and declaring the rest of his take profit.” The Slashdot piece makes the compelling conceptual connection between Watson’s case and that of “the much ballyhooed $1 Executive club like Steve Jobs, Larry Ellison, Sergey Brin, Larry Page, and Eric Schmidt.”

The outcome of this? According to a WSJ overview of the Watson case, “Pay can vary—but it can’t be too low.”

I think if we follow the golden rule we’ll get a golden mean for the golden parachute so that it won’t strangle the golden goose.