BY G. A. FINCH If your employment agreement has deferral of compensation provisions, you may very well see a section or paragraph captioned “Internal Revenue Code Section 409A” or simply “409A.” Its official citation is 26 U.S. Code Section 409A – Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans. This… Read More INTERNAL REVENUE CODE SECTION 409A
Unit Appreciation Rights are the limited liability company’s version of Stock Appreciation Rights, an equity based incentive plan.… Read More POWER WORD PLAY (A Term, Word, or Concept an Executive Ought to Know): UNIT APPRECIATION RIGHTS
A handy definition of vesting and understanding this basic employee benefit concept.… Read More POWER WORD PLAY (A Term, Word, or Concept an Executive Ought to Know): VESTING
Management succession planning is like eating your veggies – it is good for a company and its executives.… Read More MANAGEMENT SUCCESSION PLANNING: BE LIKE A BOY SCOUT AND BE PREPARED
A synopsis on Say-on-Pay, Say-on-Frequency-of-Say-on-Pay, and Say-on-Golden-Parachutes… Read More SAY ON PAY: DODD-FRANK ACT
An Executive not knowing about a possible Section 83(b) election for his restricted stock could be in for a nasty surprise.… Read More DO YOU KNOW ABOUT RESTRICTED STOCK AND AN IRS SECTION 83(b) ELECTION?
Executives must monitor and actively manage their single stock holdings.… Read More HOW EXECUTIVES CAN MAKE THE MOST OF THEIR SHARE-BASED COMPENSATION
I had lunch with a couple of guys from Bernstein Global Wealth Management, Vice President David Spieske and Director & Principal John Patnaude. While this is not an endorsement, I believe the Bernstein folks excel at equity research and analyst services, so I readily accepted their invitation to hear their ideas on executives “making the most of… Read More CONCENTRATED STOCK
Pay-for-performance-executive compensation has increased. According to the 09 May 2011 Wall Street Journal, “Of the 350 companies in [The Wall Street Journal/Hay Group compensation] survey, 238 gave the CEO some form of performance-based award last year, up from 204 the prior year.” As a result of the Dodd-Frank legislation, shareholders in public companies exert more… Read More CONTINUED RISE IN PERFORMANCE-BASED EXECUTIVE COMPENSATION
My recent experience suggests companies continue to move toward more share-based compensation for their executives. Cash compensation is declining in relative proportion to share-based compensation. Also, the use of restricted stock and restricted stock units is expanding in relation to stock options. This development is evident in the information technology sector as I have seen in my… Read More COMPANIES TRENDING TOWARD MORE SHARE-BASED COMPENSATION
