Insights
Alert
Bindu Culas
Managing Director, New York, NY
David Gordon
Managing Director, Los Angeles, CA
Samantha Nussbaum
Principal, Los Angeles, CA
Proposed “Tax Cuts and Jobs Act” Overhauls Taxation of Executive Compensation
Alert | By Bindu Culas, David Gordon, Samantha Nussbaum
On November 2, 2017, the House Ways and Means Committee released the “Tax Cuts and Jobs Act” (H.R. 1). The bill designates several executive compensation items for amendment or repeal. If enacted as proposed, H.R. 1 would result in sweeping changes in the design and taxation of executive compensation including:
- Elimination of non-qualified deferred compensation arrangements
- Elimination of non-qualified stock options as a long-term incentive vehicle
- Elimination of deduction for performance-based compensation under I.R.C. §162(m)
Bindu Culas
Managing Director
Bindu Culas has over 20 years of experience advising clients on the US and international legal, tax and regulatory aspects of designing and structuring equity incentive programs, employment agreements, and severance and change-of-control plans.
David GordonManaging Director
Dave Gordon’s practice as an executive compensation consultant stretches back over a decade. He has covered a variety of industries, including extensive experience with financial institutions and utilities. In addition to engagements for his own clients.
Samantha Nussbaum
Principal
Samantha Nussbaum has consulted on behalf of public and private companies, compensation committees, and senior management on all aspects of executive compensation. Samantha’s consulting and legal background includes advising on executive compensation in the context of mergers and acquisitions, spin-offs, and initial public offerings; executive employment, severance, and change in control agreements; equity incentive plans; deferred compensation; and securities laws, including reporting and disclosure implications.