9 Compensation Strategies that May Limit the Impact of Sec 162(M)

October 5, 2018

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Winston & Strawn Attorney Mike Melbinger, author of the Executive Compensation Blog, has identified 9 compensation strategies that may help organizations and executives in responding to/and adjusting for the changes to Tax Code Sec 162(M). He’s published this list in his post, “Time to Make (or at Least Consider) Compensation Adjustments for 162(m) Changes.

We are sharing the 9 compensation strategies here, as Mike presented them in a recent meeting on Employee Benefits and Executive Compensation.

  1. Scrutinize the Executive Order (EO) Setting and Named Executive Officer (NEO) Selecting Processes
  2. Non-Qualified Deferred Compensation (NQDC) or Supplemental Executive Retirement Plans (SERP)
  3. Coordinated Non-Qualified Plan Distributions
  4. Automatic or Voluntary Deferral of Restricted Stock Units (RSUs) or Annual Bonus
  5. Qualified Plan SERP-Switch
  6. Code Sec. 409A Allowed Deferral
  7. Coordinated Non-Qualified Option Exercises
  8. Incentive Stock Options
  9. New Code Sec. 199A

Mike’s also made additional insights available on this podcast: Discussion on Notice 2018-68 with Mike Melbinger

Continue to read Fulcrum Partners News for further insights on Guidance on the Application of Section 162(m). And contact any member of the nationwide Fulcrum Partners team of executive benefits professionals for customized, creative solutions to help your organization attract, retain, and reward key employees and top talent.


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