Just a quick note. Today the IRS issued guidance on Section 162(m) of the Internal Revenue Code of 1986 (“Section 162(m)”), as curtailed by the Tax Cuts and Jobs Act of 2017 (i.e., the Act essentially eliminated the performance-based exception to the $1mm deduction limit under Section 162(m), except with respect to certain grandfathered plans). The IRS guidance comes in the form of Notice 2018-68. Later this week we will provide our thoughts on design considerations that should be considered by publicly-traded corporations intent on maximizing the deductibility of their compensation.
