Let’s Take those IRC Section 162(m) Lemons and Make Some Lemonade

The only sure thing is that change is inevitable. And that is exactly what happened in late 2017 to Internal Revenue Code Section 162(m) which limits tax deductions for certain compensation over $1,000,000 paid by publicly-held companies to “covered employees.” Up until late 2017, qualified performance-based compensation (a.k.a. bonus, stock options, long-term incentive, etc.) and commissions were not subject to the $1,000,000 tax deduction limit. In addition, most payments…

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What Should Incentive Compensation Reward in the New Economy?

In one form or another, most companies face an uncertain future right now. That’s a true statement any time, but the experience of the last three months has compounded the uncertainty for most leaders. What is clear is that the way of doing business going forward is not going to be the same as it was prior to COVID-19. And while most enterprise leaders are still shell-shocked from the…

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Equity Incentives at Publicly Traded vs. Private Equity Owned Companies: Is There a Difference?

Reublished with permission from Veritas Executive Compensation Consultants with special thanks to Michael Sirkin and James Reda Equity compensation for senior management of private equity owned companies is very different than that of publicly traded companies. While both types of companies share a common principle of rewarding management based on an increase in shareholder value, fundamental differences in the investors and their potential holding periods drive divergent equity compensation…

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