November 6, 2017
House’s Tax Reform Bill: Would Dramatically Alter Executive Pay!
– Broc Romanek
Last week’s tax bill from House Republicans would have a tremendous impact on executive pay if enacted into law. We’re posting memos in the “Regulatory Reform” Practice Area – but here’s a teaser from Skadden that will blow you away:
If enacted, the newly proposed “Tax Cuts and Jobs Act” would effectively put an end to many of the most widely used forms of executive compensation:
– Deferred compensation and stock options would disappear
– Use of performance-based compensation would be severely limited
– Compensation over $1 million to senior executive officers would be nondeductible for public companies and subject to an excise tax for tax-exempt organizations.
Of course, the tax reform bill released by the House Republicans today (November 2) is likely to change, perhaps drastically, in the coming days.