In this highly technical area, our group is widely known for their inventive and practical approach to solving problems and resolving business issues. Our team provides advice in connection with high-profile, multibillion-dollar M&A transactions, public proxy statements, compensation arrangements and ERISA fiduciary matters for investment funds and plan fiduciaries.
New Tax Bill Would Put a Dollar Limit on Nonqualified Deferred Compensation under Section 409A, Broaden Section 162(m)’s $1 Million Deduction Limit
January 24, 2007 Read the memo
On January 17, 2007, the Senate Finance Committee unanimously approved, by voice vote, a bill which would broaden tax code section 409A by imposing an annual dollar limit on the amount of nonqualified deferred compensation that can accrue in any year for any one person. In addition, for public companies, the $1 million deduction limit of tax code section 162(m) would be broadened to apply to post-employment payments to former officers. These compensation provisions are just a few of the changes included in the pending legislation, the "Small Business and Work Opportunity Act of 2007," the text of which only became available on January 22.