SiliconBeat

Texas Instruments said Thursday it is eliminating the use of “gross-up” payments made to reimburse its chief executive for individual income tax incurred when he uses a corporate aircraft for personal reasons, a step that is required by the board of directors’ “security policy”.

Previously the company would reimburse the tax owed on such personal usage. With its discontinuation, Texas Instruments will “no longer provides tax reimbursement for perquisites to its executive officers.”

The Austin chip-maker paid Chief Executive Richard Templeton 2.5 million in cash last year, including salary, profit sharing and a $1.5 million bonus. His personal use of company aircraft totaled $138,391.