Shareholder Attempts to Add Clawback Provisions Fail In a recent trend, shareholders (primarily led by union pension funds) of large public companies have been pressuring compensation committees to add clawback provisions to executives’ contracts.

401(k) Refund – What Can Be Done? At some point, highly compensated employees (HCEs) may find themselves in receipt of a refund check for what is determined to be “excess” 401(k) contributions. It is an unfavorable situation for both plan…

This alert serves as part two of a two-part alert regarding changes to section 162(m) of the IRS tax code. Part two focuses on recommended steps to maintain and maximize grandfathered compensation, particularly in Non-Qualified…

Recently, the IRS issued Notice 2018-68, providing guidance under Section 162(m) of the Internal Revenue Code, as amended by the 2017 Tax Cuts and Jobs Act (the “2017 Act”). Section 162(m) disallows the deduction of compensation paid by…

The Internal Revenue Code requires that a Non-Qualified Deferred Compensation Plan (“NQDCP”) must be treated as an unsecured promise to pay future benefits such that participants can defer current income recognition.

For most employees, 401(k) plans are an effective solution to retirement needs. However, key employees and executives require more. At higher income levels, tax-advantaged savings opportunities are limited by the government.

Finding the right executive benefits firm to administer your non-qualified plan is important for its long-term success. An effective Request For Proposal (RFP) process can help you accomplish this and ensure compliance with 409A and corporate governance standards such as Sarbanes-Oxley.

In general, a corporation that elects to be taxed under subchapter S of the Internal Revenue Code (S Corp) does not pay any federal income taxes. Instead, the corporation’s net income or net losses are passed through to the shareholder(s), who then report the net income or net loss on their own individual income tax returns.