Thursday, February 28, 2008

Tech CFOs Cite 409A Third on List of Biggest Challenges

"Forty-nine percent of the 100 CFOs surveyed identified Section 404 as the greatest challenge, 36 percent said FIN 48, and 12 percent cited 409A. "

Monday, February 18, 2008

Option Reprice Wave Builds

"With top executives and rank-and-filers at many U.S. companies holding now-worthless stock options, the time seems right for a round of repricing. New rules requiring companies to get the blessing of shareholders, themselves freshly gored by falling stock prices, will force boards to devise friendlier, or at least less objectionable, ways to pitch the controversial practice."

409A not discussed, but see Preamble to final regulations relating to re-pricing options.

Friday, February 15, 2008

IRS Reverses Position on 162(m); Public Companies Confused

"In earlier rulings, the IRS had treated payments upon an executive's involuntary termination or termination for good cause as coming within the death, disability, or change in control exception. In PLR 200804004 (1/25/2008), the IRS reversed course and ruled that an incentive pay award would not qualify as performance-based compensation exempt from the § 162(m) $1 million cap where the executive is entitled to the payment in the event of an involuntary termination or termination for good reason."




Wednesday, February 6, 2008

IRS Signals More Intense Scrutiny of Executive Compensation for Tax-Exempt Organizations

"Tax-exempt organizations face significantly expanded disclosure of executive compensation programs and related Board policies in the 2008 tax year under new IRS rules. As a result, potential donors are more likely to review pay programs with greater scrutiny."