| Tax and Regulatory |
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FAS 123 and FAS 123(R)
FAS 123 was issued by the Financial Accounting Standards Board in 1995 and updated in 2004 [FAS 123(R)]. The revised FAS 123(R) statement requires companies to recognize compensation expense for the fair value of employee share-based payment transactions on their income statement, eliminating the accounting choices previously available under APB 25 or the original FAS 123. For payment transactions with no observable market value (e.g., stock options), companies must use an option pricing valuation model (e.g., Black-Scholes, binomial) to determine the fair value. |
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The Changing Requirements for Equity Compensation |
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The Battle of the High Performers - Equity Vesting Alternatives that Make a Difference |
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New Watchwords in LTI Compensation - Efficiency, Diversification and Performance |
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Performance Equity Plans - The Design and Valuation Under FAS 123(R) |
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FAS 123(R) - What Does It Mean for Your Organization |
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The Impact of FAS 123 on Stock-Based Compensation Plans |
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409A
Section 409A of the Internal Revenue Code, created by the American Jobs Creation Act (AJCA), defines nonqualified deferred compensation arrangements and the tax liability associated with such plans. |
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New Watchwords in LTI Compensation - Efficiency, Diversification and Performance |
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What Now for Deferred Compensation Plans? |
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Nonqualified Voluntary Deferred Compensation: Through the Eyes of Your Executives |
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The New Deferred Compensation Rules: What Employers Most Need to Know |
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162(m)
Section 162(m) of the Internal Revenue Code (IRC) generally disallows a tax deduction to public companies for compensation of more than $1 million paid to the company's chief executive officer or any of the four most highly compensated executive officers (other than the CEO). Section 162(m) provides that qualifying performance-based compensation will not be subject to the tax deduction limit if certain requirements are met.
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New IRS Guidance on Section 162(m): Only Four Employees Now Subject to Section 162(m); CFO No Longer Included |
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Viewpoint - 162(m), the Museum of Unintended Consequences |
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280(g)
Section 4999 of the Internal Revenue Code 280(G) was established in 1983 to cap change-in-control parachute payments made to executives. |
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Hot Topics - Golden Parachutes |
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Sarbanes-Oxley
The Sarbanes-Oxley Act of 2002 regulates accounting oversight, corporate responsibility (to include certified financial statements), documentation and reporting. The law also requires that written notification be provided for periods where employees cannot trade company stock [for 401(k) and other deferred compensation plans] and limits insider trading during such periods, prohibits the extension of credits/personal loans to directors and officers and limits auditing firms' ability to provide additional services to their client.
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Sarbanes-Oxley: Bane or Boon |
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Blackout Rules and DC Plans: Shedding Light on Sarbanes-Oxley |
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Sarbanes Oxley Act of 2002 White Paper |
Reading Proxy Statements