Code Section 162(m) Issues For Publicly-Held Employers to Consider for 2018 and Beyond -
As we reported here, on December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Act”). One of the provisions of the Act significantly curtailed public company deductions under Code Section 162(m) for compensation paid to certain executives. Public companies should review these changes to determine whether any changes to their executive compensation plans are necessary or desirable for 2018 and beyond.
BACKGROUND -
Under prior law, Code Section 162(m) provided that a “publicly-held corporation” generally may not deduct compensation of more than $1 million that is paid to certain “covered employees” unless the compensation is “qualified performance-based compensation” or certain commissions. Under the Act, Code Section 162(m) has been amended in several respects.
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