Defending gross-ups

Investor relations professionals frequently have to deal with an embarrassment of riches. Literally. When executives reap gigantic windfalls triggered by mergers or acquisitions, or bosses dump shares in advance of a negative earnings report, hostile calls from the press and shareholders light up the switchboard. The latest challenge: dealing with questions about ‘gross-ups’, cute little techniques whereby shareholders pay for the taxes incurred by CEOs and other top executives