Guidance On Executive Compensation Restrictions under Economic Stabilization Act

Today, the IRS released Notice 2008-94 providing guidance on the restrictions on executive compensation applicable under the Ecomonic Stabilization Act of 2008.

Document Excerpt

This notice provides guidance on certain executive compensation provisions of the Emergency Economic Stabilization Act of 2008, Division A of Public Law No. 110-343 (EESA), which was enacted on October 3, 2008.  Section 302 of EESA added new §§ 162(m)(5) and 280G(e) to the Internal Revenue Code.  Section 162(m) limits the deductibility of compensation paid to certain corporate executives and § 280G provides that a corporate executive’s excess parachute payments are not deductible and imposes (under § 4999) an excise tax on the executive for those amounts.  

 Link http://www.irs.gov/pub/irs-drop/n-08-94.pdf

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