December 12, 2017
Sleeper of the Year: The 162(m) Tables You Absolutely Need for Your ’18 Proxies
– Jesse Brill
Here’s a big sleeper for you. The November-December issue of “The Corporate Executive” has a lead piece about how many companies are not disclosing all their non-deductible, non-complying 162(m) compensation. This is a big deal, particularly because it all will need to be disclosed under the coming tax reform legislation which – when you add up all the bonuses, RSUs, options & all other performance-based compensation – will be huge, embarrassing numbers. Like pay ratio, once companies appreciate the magnitude & sensitivity of this sleeper, they will all be concerned about how to address this sensitive disclosure.
On page 2 of that important lead article in “The Corporate Executive,” it’s mentioned that an excellent series of tables will be posted on CompensationStandards.com – these tables are now posted (courtesy of Deloitte Consulting’s Mike Kesner & Ed Sim). They provide examples of the possible cost to companies of 162(m) non-deductible compensation.
As you will see, the tables highlight the large numbers that many companies with 162(m) non-compliant compensation apparently are failing to disclose right now. You now have a “heads up” on the impact of what companies will no longer be able to deduct under new 162(m) — and what they will need to be disclosing going forward…
If you’re not a subscriber to “The Corporate Executive,” try a 2018 no-risk trial now & receive this November-December issue for free…