EXECUTIVE PAY.: The Great Game of Gimmicks


LEWIS Carroll's Red Queen had to run as fast as she could to stay where she was. Many U.S. executives have the same feeling. When they get a raise, taxes take so much that they have little of it left in real income. To find other ways to reward them, U.S. industry is evolving a system of weird and complex devices known as "gimmicks." Says RCA's Chairman David Sarnoff: "You can't compete for executive talent today without a gimmick."

The problem of a $175,000 executive who is able to keep only $48,000 in take-home pay is not one calculated to arouse...

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