Evolving Rules Mean Execs & Employers Should Review Executive Comp

September 19, 2015

Risk Operations Compliance

New SEC executive pay transparency IRS tax rules are the latest in a series of evolving executive pay and deferred compensation rules mean employers and executives can’t afford to assume their or their consultants’ or executives’ historical executive compensation, severance, bonus or stock plan experience or practices still pass muster. Avoid potentially expensive mistakes that could trigger unexpected tax or other penalties and liabilities for the executives or the companies by checking with qualified counsel to confirm your existing and contemplated arrangements still meet the rules and have the expected tax, don’t trigger tax, reporting or notice obligations you may otherwise miss, or other unexpected liabilities or consequences.Changes present many potential traps for companies and the executives if not properly understood and handled. These can include:

  • Accelerated tax liability, recognition and withholding for the employer, the executive or both;
  • Lost or reduced deductibility of the compensation payments made by the…

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