How Well Do You Know Your Employee Stock Options?

Imagine you’ve been recruited to get in on the ground floor at a successful startup company. Instead of getting a big paycheck, a large portion of your compensation will come in the form of stock options. It’s one way to reward you for the time you’re willing to put in to help build the company. You’re essentially contributing your sweat equity and betting that your company’s future is bright and that you’ll go along for ride. READ MORE

Proposed IRS 162(M) Regulations Effect Executive Compensation Arrangements

The Internal Revenue Service (“IRS”) recently proposed Regulation 122180-18 (the “Proposed Regulations”) to implement the amendments found in the Tax Cuts and Jobs Act of 2017 (the “Act”)1 to Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).  The Proposed Regulations supersede the IRS guidance previously released in IRS Notice 2018-682 and remain open for comment until February 18, 2020; however, many aspects of the Proposed Regulations take immediate effect.  This alert summarizes key aspects the Proposed Regulations on executive compensation arrangements. READ MORE

Tom Steyer sells voters cruel economic fiction with massive proposed minimum wage hike

Billionaire Tom Steyer is (barely) relevant to the Democratic presidential race and is so only because he has spent tens of millions of dollars spamming the airwaves with his advertisements. Given that he earned all that money, an observer would think the businessman-turned-presidential-aspirant would perhaps know a thing or two about how business and basic economics work. But Steyer’s latest comments on the minimum wage prove he doesn’t understand this stuff at all. READ MORE

SEC Release on Key Performance Metrics Has Implications for Compensation Professionals Too

Last month, the SEC issued an interpretive release addressing Item 303 of Reg S-K (see Rel. No. 33-10751, Key Performance Metrics (2020)). Although this guidance relates to the MD&A, it is, of course, also relevant to executive compensation and disclosure professionals, because key performance metrics are usually an important part of short- and long-term incentive compensation plans and disclosures. The release is relatively benign but worth reviewing for its increased scrutiny on performance metrics. The following is from the latest issue of The Corporate Counsel (subscription required): READ MORE

Proposed IRS 162(M) Regulations Affect Executive Compensation Arrangements

The Internal Revenue Service (“IRS”) recently proposed Regulation 122180-18 (the “Proposed Regulations”) to implement the amendments found in the Tax Cuts and Jobs Act of 2017 (the “Act”)1 to Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).  The Proposed Regulations supersede the IRS guidance previously released in IRS Notice 2018-682 and remain open for comment until February 18, 2020; however, many aspects of the Proposed Regulations take immediate effect.  This alert summarizes key aspects the Proposed Regulations on executive compensation arrangements. READ MORE