As anticipated, on December 16, 2009, the Securities and Exchange Commission (“SEC”) presented investors and corporate governance reform advocates with a holiday gift by adopting substantial amendments to the executive compensation and corporate governance disclosure requirements for publicly held companies.
Executive Compensation Law Blog
For the Latest Updates on Law Affecting Executive Compensation
The Executive Compensation Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, focuses on legal issues related to executive and employee compensation. It covers topics such as incentive stock options (ISOs), employee stock purchase plans (ESPPs), tax reporting requirements, compliance with SEC regulations including clawback policies, and the implications of changes in tax law on executive compensation. The blog provides updates on regulatory deadlines, IRS forms, and best practices for employers in administering compensation plans. It also addresses corporate governance aspects related to executive pay and the impact of financial restatements on incentive compensation recovery.
Latest from Executive Compensation Law Blog - Page 7
IRS Issues New Final Regulations for Employee Stock Purchase Plans (“ESPP”)
The Internal Revenue Service (the “IRS”) issued final regulations on November 17, 2009 relating to options granted under an ESPP as defined in section 423 of the Internal Revenue Code (the “Code”). Also, on the same date, the IRS issued new…
IRS Issues Final Regulations Regarding Annual ISO/ESPP Reporting Requirements
The Internal Revenue Service (the “IRS”) has issued final regulations regarding the information return and information statement requirements under Section 6039 of the Internal Revenue Code. Section 6039 was amended in 2006 to require corporations to file an information return…
Federal Government Fires More Salvos At Executive Compensation
The federal government’s extraordinary multi-pronged attack against executive compensation practices took another step forward, this time with the Federal Reserve Board of Governors (“FRB”) taking aim. On October 22, 2009, the FRB proposed new guidance that will dramatically affect incentive…
House Quickly Passes Legislation to Control Executive Compensation Practices
Acting in rapid fashion, on July 31, 2009, the House of Representatives passed legislation that, if enacted, would further advance the federal government’s efforts to realign executive compensation practices. As we reported in our July 22, 2009 blog, the…
New Draft Legislation Continues the Assault on Executive Compensation
As a part of the federal government’s on-going efforts to reform executive compensation practices and to rein in excessive compensation, the Treasury Department drafted and released new legislation (known as the “Investor Protection Act of 2009”) on July 16, 2009…
Changes in Store for 2010 Proxy Season as SEC Proposes Significant Expansion of Executive Compensation and Corporate Governance Rules and Treasury Releases Draft New Legislation
As anticipated and in response to the “turmoil in the markets during the past 18 months”, on July 10, 2009 the Securities and Exchange Commission (“SEC”) proposed substantial amendments to the executive compensation and corporate governance disclosure requirements for publicly…
New TARP Executive Compensation Guidance and a Call for Further Reform in Executive Compensation Practices
June 10,2009 marked an extraordinary day of announcements affecting executive compensation for both recipients of financial assistance from the Troubled Asset Relief Program (“TARP”) and other publicly held companies, including:
- The U.S. Department of the Treasury (“Treasury”) issued a statement
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Reminder For Corporations To Issue Annual ISO/ESPP Information Statements To Employees By January 31
Employers must furnish employees who exercised incentive stock options (“ISOs”) or sold or otherwise transferred shares acquired under an employee stock purchase plan (“ESPP”) during 2007 with a detailed information statement by January 31, 2008.…
Impact of the Emergency Economic Stabilization Act of 2008 on Executive Compensation Issues
The Emergency Economic Stabilization Act of 2008 (“EESA”), which President Bush signed into law on October 3, 2008, created the Troubled Asset Relief Program (“TARP”) under which the United States Treasury (the “Treasury”) is generally authorized to purchase troubled assets…