One question facing public companies is whether or not to implement a stock ownership policy for its senior executives. In essence, a stock ownership policy requires each covered executive to hold a specified minimum amount of company stock. Corporate governance
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 8
The Long Arm of 409A
Yes, sadly this is yet another blog posting dealing with that infernal Internal Revenue Code Section 409A. But, my musings here are not about the intricacies of 409A and the various tax issues it presents or even the fact that…
Proposed Regulations Revise Annual ISO/ESPP Reporting Requirements
On July 16, 2008, the Internal Revenue Service (“IRS”) issued proposed new regulations relating to the information return and information statement requirements under Section 6039 of the Internal Revenue Code. As we reported in our January 24, 2008 blog article…
Reminder: Act Now! 409A Transition Relief Set to Expire December 31, 2008
IRS Notice 2007-86 extended the deadline for employers to bring documents into compliance with the final regulations of Section 409A of the Internal Revenue Code (the “Code”) until December 31, 2008. With less than six months remaining in the year,…
IRS Confirms Significant Change in the Landscape of 162(m) Performance-Based Compensation Arrangements
On February 21, 2008, the Internal Revenue Service (“IRS”) released Revenue Ruling 2008-13, which confirms and expands upon the position taken in Private Letter Ruling (“PLR”) 200804004 that compensation intended to qualify as “performance-based compensation” under Section 162(m) of…
Significant Change in the Landscape of 162(m) Performance-Based Compensation Arrangements
On January 25, 2008, the Internal Revenue Service (“IRS”) released Private Letter Ruling (“PLR”) 200804004. This new PLR has apparently reversed an important position that served as guidance to public companies and practitioners regarding the tax deductibility of certain performance-based…