Employee Benefits Blog

Public Companies Should Consider Shareholder Reapproval of Section 162(m) Performance Compensation Plans Approved in 2012

As public companies continue to prepare for the 2017 proxy season, we wanted to provide a final reminder of an executive compensation related item that might require shareholder approval in 2017. As reported in Part 1 of our End of Year Plan Sponsor “To Do” Lists, Section 162(m) of the Internal Revenue Code limits the […]

March 29, 2017 | 1 min read | Tagged: 132(m), Compensation Committee, Covered Employees, deduction, Internal Revenue Code, performance goals, shareholder, shareholder approval

Greg Gautam Partner

CFOs of Smaller Reporting Companies May Be Considered “Covered Employees” for Purposes of Section 162(m)

The $1,000,000 limitation on deductions imposed by Section 162(m) of the Internal Revenue Code applies to “covered employees.” In Notice 2007-49, the IRS defined the term “covered employees” as follows: “The IRS will interpret the term “covered employee” for purposes of § 162(m) to mean any employee of the taxpayer if, as of the close of […]

March 21, 2016 | 2 min read | Tagged: Covered Employees, IRS, Section 162(m)

Greg Gautam Partner