November 7, 2017
An Obituary for Equity Compensation
– Broc Romanek
As we continue to post memos in our “Regulatory Reform” Practice Area about the new House tax bill – here’s the intro from this hilarious blog by Performensation’s Dan Walter:
Stock Options, Restricted Stock Units, young Performance Units and their cousin Non-Qualified Deferred compensation tragically died in 2017 as an unintended consequence of colliding with the 429 page U.S. tax reform called the ‘‘Tax Cuts and Jobs Act.’’ It should be noted that Employee Stock Purchase Plan is currently in critical condition at a local hospital.
– Stock Options had lived an exciting and robust life since the 1980s. Friends and associates attribute the success of their business and the growth of nearly all technology we enjoy today to Stock Options.
– Restricted Stock Units, fondly remembered as “RSUs,” had recently provided stability to the family. After gaining prominence in the early 2000s, RSUs had recently become a leader in the family.
– Performance Units were just youngsters at the time of the accident. Vibrant and imaginative, their creative approach was an inspiration to companies and investors looking to build a brighter, more just, tomorrow. Their surprising loss will change the course of history for years to come.
– Non-Qualified Deferred Compensation (“NQDC” to its friends), a beloved cousin, lived a quiet life at edges of the family. While less well-known, NQDC was a vital component for many of its supporters.
Also impacted by the accident was Employee Stock Purchase Plans (ESPP). ESPP is a beautiful blend of many of the best features found in other members of the family. A favorite of a broad section of the population, ESPP’s mission was to provide an uplifting experience to the “regular folks” who often did not get a chance to meet other family members. ESPP is currently on life-support, with no additional information available at the time this was written.
The Equity Compensation family was often misunderstood, but lived to make people more successful. They enjoyed spending time with small, private companies in need of a spark for growth and well-known public companies working to provide the tools, system, medicine and other advancements that make the world a better place. Their extended family has moved all over the world and remain exciting contributors to the success of individuals in nearly every country on the planet. The loss of Equity Compensation in the United States will put all of us at a disadvantage in the competitive future.