Rich Companies that Pay Executives, but not much Tax

Investing, Investments

The following U.S. companies each earned over $1 billion in pre-tax profits in the most fiscal year and paid their top executive over $25 million dollars.  Yet all of these American companies paid less of their income to the U.S. federal government than the average American taxpayer.  It is important, however, to note that there are many legitimate reasons for companies to pay only a small percentage of their earnings to the U.S. government in the current year, including their business operating and paying taxes in foreign domains or timing differences between accounting and tax reporting.  Tax rate paid to the U.S. government represents the current portion of the company’s domestic taxes, while tax rate provision represents all taxes, both current and deferred, domestic and foreign.

See what any company paid their CEOs and the U.S. government with the NerdWallet Tax Rate Transparency Tool.

 

1.  International Business Machines (IBM)

Pre-tax earnings: $21.0 Billion

Tax Rate Paid to U.S. government: 1%

Tax Rate Provision: 25%

Top Paid Executive: S.J. Palmisano ($31.8 million)

 

 

2.  Verizon (VZ)

Pre-tax earnings: $10.5 Billion

Tax Rate Paid to U.S. government: 2%

Tax Rate Provision: 3%

Top Paid Executive: Ivan G. Seidenberg ($26.5 million)

 

 

3.  Exxon Mobil (XOM)

Pre-tax earnings: $73.3 Billion

Tax Rate Paid to U.S. government: 2%

Tax Rate Provision: 42%

Top Paid Executive: Rex Tillerson ($34.9 million)

 

 

4.  Coca-Cola (KO)

Pre-tax earnings: $11.4 Billion

Tax Rate Paid to U.S. government: 3%

Tax Rate Provision: 25%

Top Paid Executive: Muhtar Kent ($29.1 million)

 

 

5.  Occidental Petroleum (OXY)

Pre-tax earnings: $10.5 Billion

Tax Rate Paid to U.S. government: 3%

Tax Rate Provision: 40%

Top Paid Executive: Ray R. Irani ($49.8 million)

 

 

6.  Freeport McMoRan Copper & Gold (FCX)

Pre-tax earnings: $8.8 Billion

Tax Rate Paid to U.S. government: 4%

Tax Rate Provision: 35%

Top Paid Executive: James R. Moffett ($30.1 million)

 

 

7.  Facebook (FB)

Pre-tax earnings: $1.7 Billion

Tax Rate Paid to U.S. government: 5%

Tax Rate Provision: 41%

Top Paid Executive: Sheryl K. Sandberg ($30.9 million)

 

 

8.  United Technologies Corp (UTX)

Pre-tax earnings: $7.6 Billion

Tax Rate Paid to U.S. government: 6%

Tax Rate Provision: 29%

Top Paid Executive: Louis Chenevert ($27.7 million)

 

 

9.  3M Co (MMM)

Pre-tax earnings: $6.0 Billion

Tax Rate Paid to U.S. government: 7%

Tax Rate Provision: 28%

Top Paid Executive: George W. Buckley ($25.4 million)

 

 

10.  Honeywell Intl (HON)

Pre-tax earnings: $2.3 Billion

Tax Rate Paid to U.S. government: 7%

Tax Rate Provision: 18%

Top Paid Executive: David M. Cote ($37.8 million)

 

 

11.  ConocoPhillips (COP)

Pre-tax earnings: $23.0 Billion

Tax Rate Paid to U.S. government: 8%

Tax Rate Provision: 46%

Top Paid Executive: J.J. Mulva ($27.7 million)

 

 

12.  CBS Corp (CBS)

Pre-tax earnings: $2.1 Billion

Tax Rate Paid to U.S. government: 9%

Tax Rate Provision: 36%

Top Paid Executive: Leslie Moonves ($69.9 million)

 

 

13.  Pfizer (PFE)

Pre-tax earnings: $12.8 Billion

Tax Rate Paid to U.S. government: 11%

Tax Rate Provision: 32%

Top Paid Executive: Ian Read ($25.0 million)