The Demise of Gross-Ups

Cari Tuna published an solid article in the April 21 Wall Street Journal on the demise of gross-ups for taxes on perks and golden parachutes. Ira Kay, Watson Wyatt's Global Exec Comp Practice Director, was quoted noting his support for eliminating gross-ups. As Ira has frequently pointed out this is an historic opportunity to eliminate expensive distractions and focus on the core pay for performance mechanisms that drive the US economic engine.