WASHINGTON - Sen. Carl Levin, D-Mich., plans to introduce legislation as early as this month that would let companies claim tax deductibility for executive pay in excess of $1 million only if they deduct the cost of stock option grants from their profits.
Under current law, tax deductions for executive pay are capped at $1 million.
A spokeswoman said Mr. Levin was not ready to offer details of his proposal.
Mr. Levin introduced legislation in the early 1990s that would require companies to write off the cost of stock options as an expense, thereby reducing their profitability. The legislation made no headway in Congress.