If either President Trump's plan or a similar proposal from House Republicans moves forward (see "Business Tax Reform All but Certain in US, Europe"), companies may be less concerned by the $1 million limit on deductions of executive compensation under Section 162(m) of the Internal Revenue Code because the lower overall tax rate would reduce the value of the tax deduction.
And here is the final sentence of all: "WAIVER OF CERTAIN PROVISIONS IN CONNECTION WITH LOAN MODIFICATIONS — The Secretary shall not be required to apply executive compensation restrictions under section 111, or to receive warrants or debt instruments under section 113, solely in connection with any loan modification under this section".
§ 30.11 Q-11: Are TARP recipients required to meet any other standards under the executive compensation and corporate governance standards in section 111 of EESA? § 30.16 Q-16: What is the Office of the Special Master for TARP Executive Compensation, and what are its powers, duties and responsibilities?
Executive compensation: Technically, it's part of financial regulatory reform.
Executive compensation needs to become part of the reform agenda.
It is based on the firm's client update, "Executive Compensation and Benefits Alert: Nuisance Plaintiffs Pursue Novel Theories to Exact Section 16 Settlements," dated February 23 , 2017 and available here.
Clinton agreed with the majority of his advisers, and a new provision was added to the Internal Revenue Code, Section 162(m), allowing corporations to deduct from their tax bills executive compensation in excess of $1 million, if the compensation is tied to company performance.
Part of the problem is standard executive compensation practice.
For purposes of section 4304 a)(16) of this title and section 2324 e)(1)(P) of title 10, the Administrator shall review commercially available surveys of executive compensation and, on the basis of the results of the review, determine a benchmark compensation amount to apply for each fiscal year.
In a cover article in the Sunday Business section, P.J. Joshi reports that a study conducted for The New York Times by Equilar, an executive compensation data firm, showed that the median pay for top executives at 200 big companies last year was $10.8 million, a gain of 23 percent from 2009.
