Chief executives' compensation has risen faster than worker salaries in recent decades, further widening the wealth gap. The report highlights the role of little-known savings plans called top hat plans, which are typically reserved for highly paid executives. These plans allow executives to defer up to 100% of their compensation without paying income tax until withdrawal. The report reveals that the top five executives at large publicly traded companies in the S&P 500 index held a combined $8.9 billion in these plans. Various companies, including Walmart, Home Depot, Hyatt Hotels, and Nike, sponsor top hat plans.
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