Tag: non-qualified deferred compensation

The end of Section 162(m)?

In case you missed it, according to this article in Bloomberg BNA, the new tax proposal would eliminate tax benefits under IRC Section 162(m), which allows companies to deduct executive compensation over $1 million (in addition to regularly deductible compensation up to $1 million) so long as it is performance-based and meets certain other conditions, such as shareholder approval and approval by a committee of “outside directors.”  According to the article, the proposal would retain the $1 million cap on deductible compensation but eliminate the exemption for performance-based pay that exceeded the cap.