Compensation clawbacks can raise difficult, and often adverse, tax issues for employees and other service providers. Specifically, for clawbacks that are effected on a gross (pretax) basis, questions arise as to how the...more
11/29/2023
/ C-Suite Executives ,
Clawbacks ,
Equity Compensation ,
Executive Compensation ,
Incentive Compensation ,
Income Taxes ,
Listing Rules ,
Nasdaq ,
Rule 10D-1 ,
Securities Exchange Act ,
Tax Liability ,
Third-Party Service Provider
The 2017 Tax Cuts and Jobs Act (TCJA) significantly amended Internal Revenue Code Section 162(m), which generally disallows the deduction of compensation in excess of $1 million paid by a “publicly held corporation” to a...more
12/18/2019
/ Acquisitions ,
Comment Period ,
Compensation & Benefits ,
Covered Employees ,
Executive Compensation ,
Grandfathering Rules ,
Internal Revenue Code (IRC) ,
IRS ,
Mergers ,
Proposed Regulation ,
Publicly-Traded Companies ,
Section 162(m) ,
Section 409A ,
Tax Cuts and Jobs Act ,
Vesting
Federal tax law changes enacted with the Tax Cuts and Jobs Act of 2017 may require tax-exempt organizations to reevaluate their compensation practices, particularly with respect to employee severance. Section 4960 of the...more
Section 162(m) of the Code generally disallows the deduction of compensation in excess of $1 million paid by a public company to a “covered employee” in any single taxable year. The Tax Act makes the following changes to...more
Summary: The IRS recently informally revised its guidance regarding which officers of public companies must be considered when determining the compensation deduction limitation of Section 162(m) of the Internal Revenue Code...more