Date of Award
3-1968
Degree Type
Master's Essay - Restricted
Degree Name
Master of Business Administration (MBA)
Department
Business Administration
First Advisor
Howard C. Launstein
Abstract
The executive stock option plans enjoyed only a very limited endorsement prior to 1950 primarily be - cause the application of the federal tax laws were not clearly stated. Since 1950 the executive stock option plan - restrictive stock option plan - has received wide spread use as an incentive plan in compensating top executives. The more liberal terms that were enacted in the Internal Revenue Act of 1950 provided the needed stimulus that was necessary for this method of executive compensation to be accepted by the business community. The chief provision in the Internal Revenue Act which made this form of compensation so appealing was the section of the law which stated that any income received from the sale of stock which was held for six months or more would be taxed as a capital gains and not as ordinary income provided the executive a tax savings.
Recommended Citation
Schwarz, Robert F., "An Analysis of the Effects of the 1964 Internal Revenue Act on Executive Stock Option Plans" (1968). Master's Essays (1922 - ). 2562.
https://epublications.marquette.edu/essays/2562
Comments
An Essay Presented to Howard C. Launstein Ph.D. Marquette University In Partial Fulfillment of the Requirements for a Masters Degree in Business Administration, Milwaukee, Wisconsin.