HR Policy in conjunction with the Center On Executive Compensation believe that compensation is an important tax deduction for business. Section 162(m) of the tax code limits the amount of deductible compensation that a company can pay to the CEO and top four other most highly paid officers to $1 million annually. That limitation does not include compensation deferred under a nonqualified deferred compensation plan. HR Policy believes that the tax treatment for executive compensation should be fair and consistently applied across industries. Limiting the deduction by industry is a practice that will damage the ability for companies to recruit and maintain talent in those industries where the compensation deduction is limited.