The tax reform bill now hurtling its way toward President Trump’sdesk is generally good news for millionaires. Except for one kind: Exceptionally well-paid executives at nonprofits.
Those folks could see a pay cut in coming years, thanks to a new 21% excise tax that the final bill levies on nonprofit employers for salaries over $1 million.
“That’s something we expect is going to create a lot of turmoil,” said Steven Seelig, a senior regulatory advisor for executive compensation at consulting firm Willis Towers Watson. “They’re going to need to justify that it’s worthwhile for them to be paying that additional excise tax, rather than them cutting back on pay. And every dollar counts.”