The idea actually has some merit. Excessive executive compensation really just robs shareholders of their share of the profits. This issue has received a fair amount of debate and criticism for decades. Before The Regan tax cuts, this excessive compensation would have been taxed away. That said, it really only became an issue after those cuts. I’m not in favor of messing around with general accounting rules regarding how businesses expense things. However, the idea of taxing away compensation above a certain threshold would be good for stockholders. After all, they are the real owners of the company.