Insurance policies fund executive pay

Reports are surfacing that big banks are using life-insurance policies to help pay bonuses, pensions, and deferred compensation owed to their executives – with the banks as the beneficiaries.  While not illegal, critics complain that the banks get tax breaks for funding such quasi-pensions, then profit when the executives die.  School of Management Professor Fred Foulkes, director of the Human Resources Policy Institute and an expert on executive compensation, can offer insight into this novel tactic.

Contact Fred Foulkes, 617-353-4281, ffoulkes@bu.edu

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