May 31, 2018
162(m) Repeal: What’s the Tax Cost of Executive Pay?
– Liz Dunshee
This “Stanford Law Review” article suggests that for some companies, executive pay could become about 20% more expensive following the repeal of Section 162(m). As I’ve previously blogged, companies could limit their tax burden by increasing fixed pay & time-vested awards as a portion of total compensation – but most people think that performance awards are here to stay. The professors advocate for a new rule that would require companies to disclose the tax cost of executive pay, so that shareholders have full information.
By the way, here’s a slew of memos about the new tax reform law…