BABENKO, ILONA; TSERLUKEVICH, YURI - In: Journal of Finance 64 (2009) 4, pp. 1797-1825
Employees tend to exercise stock options when corporate taxable income is high, shifting corporate tax deductions to years with higher tax rates. If firms paid employees the same dollar value in wages instead of stock options, the average annual tax bill for large U.S. companies would increase...