섹션 162 (m) 스톡 옵션

162 항 (m) 함정.

프록시 시즌이에요. 내국세 법 (162) 항 162 (m) 항에 의거 한 연간 공제 한도에 대한 성과급 보상 예외에 의존하는 공기업의 경우 연례 및 장기 인센티브 계획을 채택하고 성과를 설정해야 함을 의미합니다 목표를 설정하고, 전년도 계획의 성과 목표 달성을 인증하고, 성과 목표를 공개하고, 연례 보상 토론 및 분석 공시에서 임원 보상의 공제 가능성을 언급합니다.

우리는 162 (m)의 성과 기반 보상 예외 조항에 대해 자격을 갖추는 것보다 치명적일 수있는 몇 가지 일반적인 준수 함의 함점을 강조했습니다. 상장 회사는 최고 경영자에게 지급되는 보상에 대한 세금 공제를 극대화하기 위해 이러한 함정에 비추어 성과 중심 보상 제도를 검토해야합니다.

일반 조항 162 (m) 함몰.

정당한 사유로 퇴직, 비자발적 인 해지 또는 해지시 성과 중심 보상금 지급. IRS Revenue Ruling 2008-13에 따라 2008 년 2 월 21 일 이후에 입수 한 고용 계약 (또는 자동 갱신 또는 연장을 포함하여 그 날짜 이후에 갱신되거나 연장되는)에 따라 지불되는 보상은 2009 년 1 월 1 일 이후에 시작하는 성과보고 기간 동안 지급됩니다. 임원이 퇴직 할 때 성과 목표를 달성했는지, 종업원이 무의식으로 종결했는지, 또는 정당한 사유로 고용을 종료하는지 여부에 관계없이 지급 될 수있는 경우 성과 중심으로 자격을 갖추지 못합니다. 이 규칙은 이러한 이벤트가 실제로 발생하는지 또는 성능 목표가 실제로 달성되었는지에 관계없이 적용됩니다. 그 조항의 단순한 존재는 협약을 실격시킨다. [1] 따라서 기업은 고용 계약, 퇴직금 계약 및 기타 보상 약정을 검토하여 제 162 (m) 항을 준수하기위한 성과 기반 약정이 정당한 사유로 퇴직, 비자발적 종료 또는 해지에 대해 지불 될 수 있는지 확인해야합니다.

"사외 이사"가 아닌 이사가위원회에서 162 (m) 성과급 보상을 승인하고 관리하는 것을 허용한다. 성과급 보상의 자격을 얻으려면 2 명 이상의 "사외 이사"만으로 구성된위원회에서 보상을 수여하고 관리해야합니다. "사외 이사"는 전직 직원 또는 현직 또는 전직 직원 (상황에 따라 임시 직원으로 활동 한 이사 포함)이 아니며 일반적으로 회사 보상금 이외의 보상을받지 못하는 이사로 정의됩니다. 규칙 16b-3 (일반적으로 의무 사항 임)에 따라 비영리 이사 또는 비 고용 담당자를위한 SEC 요구 사항에 대한 뉴욕 증권 거래소 또는 나스닥 요건을 충족하는 것은 충분하지 않습니다 .162 (m) 요구 사항은 서로 다르며 더 제한적일 수 있습니다.

주주가 승인 한 비즈니스 기준을 기반으로하지 않는 성과 목표를 사용합니다. 부여 일의 공정 시장 가격과 적어도 동일한 행사 가격으로 부여 된 주식 매입 선택권 및 주식 보상 권리 (SAR) 이외의 보상은 하나 이상의 사전 설정된 성취의 전적으로 달성 된 경우에만 성과급 보상의 대상이되며, 주주가 승인 한 비즈니스 기준에 따라 객관적인 성과 목표를 달성해야합니다. 보상위원회는 주주가 승인 한 계획에 명시된 비즈니스 기준을 벗어나지 않아야합니다. 이 기준은 사용되는 정확한 목표에 대해 구체적 일 필요는 없습니다. 예를 들어, 성과 목표가 주당 이익의 10 % 증가라는 계획을 세울 필요는 없습니다. 오히려 계획은 성과 목표가 주당 순이익에 기초 할 수 있다는 것을 제공 할 필요가 있습니다. 그러나 SEC의 보상 대리 공개 요구 사항에 따라 기밀 영업 기밀이나 기밀 상업 또는 금융 정보가 공개되지 않는 한 보상 회담 및 분석에서 특정 성과 기준 및 목표를 매년 공개하고 분석해야합니다. 회사에 치명적인 피해를 입 힙니다.

성과 목표의 기반이되는 비즈니스 기준의 주주 재 승인을 얻지 못합니다. 성과 목표에 따라 충족되어야하는 구체적인 목표는 주주의 승인을받을 필요가 없습니다. 그러나 주주가 성과 목표가 근거로하는 사업 기준을 승인 한 후 성과위원회의 목표를 매년 실적 목표에 따라 변경할 수있는 권한이있는 경우, 사업 기준은 최소한 주주들에게 공개되고 재 승인되어야합니다 5 년마다. 따라서 주주가 2005 년 계획에서 사업 기준을 마지막으로 승인했다면 비즈니스 기준은 주주들에게 2010 년 재 승인을 위해 제출되어야합니다. 재승 인해야하는 성과 목표의 중요한 조건은 (1) 유자격 종업원의 등급 2) 성과 기준 보상에 대한 지급 또는 가득 조건이 근거로하는 사업 기준의 유형, (3) 특정 기간 동안 성과 기반 보상을위한 근로자에게 특정 기간 동안 제공 될 수있는 현금 또는 주식의 최대 금액 계획.

적시에 성과 목표를 설정하지 못하거나 성과 목표 또는 목표를 변경하지 못함. 성과 목표는 성과 목표와 관련된 서비스 기간의 개시 후 (또는 해당 서비스 기간의 25 %가 경과하기 전에) 그리고 결과가 실질적으로 불확실한 시점에 서면으로 작성되어야합니다. 연간 서비스 (및 실적) 기간 동안 연간 계획의 성과 목표는 2010 년 3 월 31 일까지 설정되어야 함을 의미합니다. 이 초기 목표 이후에는 성과 목표를 변경할 수 없습니다.

성과 목표가 달성되지 않았을 때 보상을 지불. 성과급 보상의 자격을 얻으려면 보상은 하나 이상의 객관적인 성과 목표를 달성하는 데에만 지출되어야합니다. 현재의 경제 환경에서 많은 기업들이 성과 목표를 달성하지 못했고 2009 년 경영진의 자유 재량에 따라 임원 보너스를 지급하는 방안을 고려할 수 있습니다. 주의 할 점은 임의 지급 보너스는 성과급 예외 요건을 충족시키지 못하고 또한 사실과 상황에 따라 성과에 근거한 보상이 성과에 관계없이 지급된다면 이전 또는 미래 보너스에 대한 성과 기반 예외를 위태롭게 할 수 있습니다. 반대로, 성과 목표를 달성 할 때 지불해야하는 보상은 주주가 승인 한 한도를 초과해서는 안되며, 계획은 승인 된 금액을 초과하여 지불 할 수있는 보상위원회의 재량을 제공해서는 안됩니다.

후속 이벤트에 대한 보너스 금액 조정은 성과 목표 수식에 포함되지 않는 경우 조정됩니다. 성과 중심의 자격을 얻으려면 특정 목표에 도달하면 지급액을 계산하기위한 객관적인 공식하에 보상을 지급해야합니다. 후속 사건에 대한 성과 측정을 조정할 수 있습니다 (예 : 조직 개편 및 구조 조정 프로그램 또는 기타 경영진 종료 비용, 통합 및 기타 일회성 지출, 사업 단위의 매각 또는 취득). 그러나이 기능은 처음에 설정 될 때 성능 목표 수식에 포함되어야하며 성능 기간이 끝날 때 추가 할 수 없습니다. 예상치 못한 상황이 발생하면 보상위원회는 상황에 따라 지불금을 원하는 수준으로 줄이기 위해 재량권을 행사할 수 있지만 조정 메커니즘이없는 경우 후속 행사의 영향을 무시하기 위해 지급금을 인상 할 수 없습니다.

성과 목표를 달성 할 때 보상금을 인상해야합니다. 보상위원회가 성과 목표를 달성 할 때 지불해야 할 금액을 인상 할 재량권을 가지고있는 경우, 보상은 성과급으로 인정되지 않습니다. 그러나, 위원회는 지불을 줄이기 위해 재량권을 가질 수 있습니다.

보상 목표를 달성하지 못했다는 보상위원회의 승인없이 상 또는 상여금 지급. 보상위원회는 목표 달성시 지불 한 금액이 제 162 (m) 항에 따라 공제 될 수 있도록 성과 목표를 달성했음을 증명해야합니다. 이는 성과에 근거한 주식 보상의 가득을 포함하여 모든 보너스 또는 상에 적용됩니다. 이 인증은 보상위원회 회의록에 포함되어야합니다.

성과 기반의 자격을 얻기 위해 주주의 승인을 받아야하는 필수 조건을 잘못 기재하거나 생략하십시오. 주주가 승인해야하는 중요한 조건에는 특정 성과 목표를 달성 할 경우 직원에게 지급 할 수있는 최대 보상 금액 또는 개별 직원에게 지급 할 보상 금액을 계산하는 공식, 보상 및 성과 목표의 근거가되는 비즈니스 기준에 대한 설명이 포함됩니다. 미지급금에 대한 설명은 주주가 특정 기간 동안 직원에게 지불 할 수있는 최대 금액을 결정할 수 있도록 충분히 구체적이어야합니다. 옵션 및 SAR과 관련하여 계획에는 특정 기간 동안 옵션 또는 SAR이 부여 될 수있는 최대 주식 수를 직원에게 명시해야합니다.

계획의 한도를 초과하는 스톡 옵션 또는 SAR 또는 지정된 기간에 개인에게 수여 할 수있는 금액 부여. 스톡 옵션 및 SAR은 주주가 승인 한 계획에 따라 부여되어야하며, 특정 기간 및 행사 가격에 특정 직원에게 부여 될 수있는 최대 옵션 또는 SAR 수에 대한 제한이 포함되어야합니다.

사내 이사가 스톡 옵션 또는 SAR을 부여하는 데 참여하도록 허용합니다. 스톡 옵션 및 SAR은 162 (m) 항에 따라 성과급 보상을받을 수 있도록 주주가 승인 한 계획에 따라 "사외 이사"가 부여해야합니다.

할인 스톡 옵션 또는 SAR을 부여합니다. 162 (m) 항에 따라 (스톡홀름 코드 409A에서 제외) 스톡 옵션 및 SAR의 행사 가격 (또는 측정)은 부여 일의 기본 주식의 공정한 시장 가치보다 커야합니다. 직원이 수령 할 수있는 보상 금액은 부여 일 이후의 주식 가치 상승에만 근거해야합니다. 2009 년 7 월 6 일 발간 된 최근의 IRS 일반 법률 조언 각서는 할인 된 스톡 옵션 또는 SAR은 섹션 162 (m)에 의거 한 성과 기반 보상의 대상이 될 수 없으며 할인 된 옵션 및 SAR은 다음과 같은 조건으로 완치 될 수 없다고 강조합니다. 162 (m) 항에 의거 한 성과 중심 보상.

스톡 옵션과 SAR 보조금을 동시에 문서화하지 않거나 보조금을 모두 문서화하지 못했습니다. 162 (m) 조례는 옵션이나 SAR 또는 그러한 보조금의 신속한 문서화를 승인하기 위해 공식적인위원회 회의가 필요하지 않더라도 IRS는 옵션이 할인된다는 입장을 취했습니다 (따라서 성과 기반으로 자격을 부여하지 않습니다) 보상위원회 회의의 동시 기록이 없거나 구두 승인이있는 경우, 보조금 지급일로부터 만료일 또는 만장일치 서면 동의 (UWC)를 사용하여 보조금을 문서화 한 경우, 제 162 조 (m) 항에 의거 한 보상) 이사회 또는 보상위원회. 국세청이 부여 날짜를 결정할 수 없다고 결정한 경우 국세청은 재무 회계 측정 날짜를 부여 날짜의 대용으로 사용합니다. 이러한 어려움을 피하기 위해 보상위원회는 옵션 또는 SAR이 언제 부여되는지에 대해 정확해야하며 예를 들어위원회 회의에서위원회 회의록이나 UWC를 준비, 서명 및 날짜 지정하는 등 모든 법인 문서를시기 적절하게 작성해야합니다. 회의가 끝난 후 1-2 일 이내에 또는 옵션 또는 SAR을 승인하기로 결정한 후. 이것은 또한 주식 보상을위한 "모범 사례"에 관한 질문을 제기합니다.

주주가 승인하지 않은 계획에 따라 스톡 옵션이나 SAR을 부여하거나 다른 보상을 지불하는 것.

주주의 승인없이 계획을 실질적으로 수정합니다.

IPO가있는 회사의 경우 IPO 이후 3 년차가 끝난 후 첫 번째 주주 총회 전에 IPO 이전 계획에 대한 주주 승인을 얻지 못했습니다.

돈의 시간 가치를 반영하여 지불액을 줄이지 않으면 서 성과급 보상의 지급일을 가속화합니다.

회사는 직원이 해고 한 날짜까지 회사가 공제 할 수없는 금액을 연기하도록 요구함으로써 162 (m) 항을 준수하지 않는 경우의 부작용을 완화 할 수 있습니다. 그러나 어려운 경제 상황에서 경영진이 신용 위험을 부담하도록하는 것은 저항에 부딪 힐 수 있습니다. 또한 그러한 연기는 409A 항에 따라 이루어져야 함을 명심하십시오.

기업은 성과급 보상과 관련하여 응급 복구 정책을 수립하는 것을 고려해야합니다. 후속 검토를 통해 지불금이 정확하게 계산되지 않았거나 성과 목표를 달성하지 못했다면 퇴직 보상 정책을 통해 보상금을 회수 할 수 있습니다.

이 핫 토픽 알림에서 논의 된 문제에 대해 궁금한 점이 있거나 자세한 정보가 필요하면 다음 Morgan Lewis 변호사에게 문의하십시오.

[1] 성과 목표 달성없이 사망, 장애 또는 소유권 또는 통제권 변경시 보상금 지급이 허용되는 경우에도 보상은 성과 기반으로 인정 될 수 있습니다. 규정은 또한 실제적으로 그 사건들로 인해 지불 된 보상이 성과에 기반을 두지 않는다고 경고한다. 그러나 수취인 (임원의 사망 또는 장애 이후) 또는 지급인 (통제가 변경된 경우)은 어떠한 경우에도 제 162 조 (m)에서 면제 될 가능성이 높기 때문에 별도의 예외는 일반적으로 그러한 지불에 대한 공제를 보장한다 .

[2] 임시 직원으로 근무하는 이사가 사실과 상황에 따라 "사외 이사"자격이되는지 여부. IRS는 Revenue Ruling 2008-32에서 다음과 같은 사실을 바탕으로 이사가 "사외 이사"자격을 갖추지 못했다고 결론을 내 렸습니다. (1) 회사는 정회원으로 임시 CEO를 역임하기 위해 이사를 무한정 고용했습니다 그 사무실에 투자 된 권위; (2) 감독은 거의 1 년 동안 정기적이고 지속적인 봉사를하고 있었다. (3) 감독은 특별 또는 단일 거래를 위해 고용되지 않았다. (4) 감독은 단순히 "장교"라는 직함을 갖고 있지 않았다. 그러나 이러한 조건 중 하나 또는 그 이상이없는 경우 판례법 제 162 (m) 항에 의거하여 "임시 간부"는 반드시 "장교"의 정의에 부합하지 않을 수 있으므로 여전히 "사외 이사"의 자격을 가질 수 있습니다.

관련 자료.

지역.

저작권 & # 169; 2017 Morgan, Lewis & amp; Bockius LLP. 판권 소유.

26 CFR 1.162-27 - 1,000,000 달러를 초과하는 특정 직원 보수.

(a) 범위. 이 섹션은 내부 수익 코드 162 (m) 항에 의거 한 1 백만 달러의 공제 한도 적용을위한 규칙을 제공합니다. 이 조항의 (b) 절은 162 (m) 항에 따른 공제를 제한하는 일반적인 규칙을 제공합니다. 이 절의 (c) 절은 일반적으로 적용되는 용어의 정의를 제공한다. 본 section의 paragraph (d)는 수수료 기준으로 지불 할 보상 공제 한도에서 예외를 규정하고있다. 이 섹션의 단락 (e)는 적격 한 성과급 보상에 대한 예외 조항을 제공합니다. 본 section의 paragraph (f)와 (g)는 공개 기업이되는 기업과 280G 조항의 적용을받는 지급에 대한 특별 규정을 제공한다. 본 section의 paragraph (h)는 162 (m) 항에 종속되지 않고 조잡한 계약에 대한 규정을 포함하는 전환 규칙을 제공한다. 이 section의 paragraph (j)는 시행일 규정을 포함한다. 162 (m) 항과 본 항에 포함되지 않는 서비스에 대한 보상의 공제에 관한 규칙은 162 (a) (1) 항 및 # xA7 항을 참조하십시오. 1.162-7. 이 조항은 보상이 162 (a) (1) 항의 요건을 충족시키는 지 여부를 결정 짓지는 않습니다.

(b) 공제에 대한 제한. 섹션 162 (m)은 과세 대상 연도에 대한 보상이 1,000,000 달러를 초과하는 경우, 해당 피고용인에게 지급되는 보상에 대해 공개 법인이 내국세 법 제 1 장에 의거하여 공제하지 못하게합니다.

(1) 상장 법인 -

(i) 일반 규칙. 공개 법인이란 Exchange Act 12 조에 따라 등록해야하는 모든 종류의 보통주 증권을 발행하는 법인을 의미합니다. 지분 증권의 등록이 자발적이라면 기업은 공개적으로 간주되지 않습니다. 이 조항의 목적 상 기업이 공개적으로 개최되는지 여부는 해당 과세 연도의 마지막 날 현재 회사가 거래법 제 12 조의보고 의무를 적용 받는지 여부만을 기준으로 결정됩니다.

(ii) 소속 그룹. 상장 기업은 1504 항 (1504 (b) 항에 관계없이 결정됨)에 정의 된 바와 같이 계열사 그룹을 포함합니다. 그러나이 조항의 목적 상, 계열사 계열의 기업은 자체적으로 공개 법인 인 자회사를 포함하지 않습니다. 공개 된 자회사 및 자회사 (있는 경우)는이 섹션과 별도로 적용됩니다. 해당 피고용인이 계열사 그룹의 2 명 이상의 회원에 의해 과세 연도에 보수를 지급받는 경우, 계열사 그룹의 각 구성원이 지불 한 보수는 그룹의 다른 모든 구성원이 보상 대상 직원에게 지불 한 보수로 집계됩니다. 이 섹션에서 공제로 허용되지 않는 금액은 과세 연도에 각 해당 법인이 보상하는 직원에게 지불 한 보상 금액에 비례하여 지불 회사간에 비례 배분해야합니다.

(2) 해당 직원 -

(i) 일반 규칙. 해당 근로자는 과세 연도의 마지막 날에 다음과 같은 개인을 의미합니다.

(A) 회사의 최고 경영자 또는 그러한 역량으로 행동하고있다. 또는.

(B) 최고 책임자 4 명 중 최고 경영자를 제외한

(ii) 증권 거래위원회 규칙 적용. 개인이 본 section의 paragraph (c) (2) (i) (A) 또는이 section의 paragraph (c) (2) (ⅰ) (B)에 설명 된 임원인지 여부에 따라 결정된다. Exchange Act에 따른 임원 보상 공개 규정에 적용됩니다.

(i) 일반적으로. 본 section의 paragraph (b)에 설명 된 공제 제한의 목적 상 보수 란 과세 연도 (162 (m) 항에 관계없이 결정)에 대한 내국세 법 제 1 장에 따라 공제로 허용되는 총액을 의미합니다 서비스가 과세 연도에 수행되었는지 여부에 관계없이 해당 직원이 수행 한 서비스에 대해

(ii) 예외. 보상에는 다음이 포함되지 않습니다 -

(A) 3121 (a) (5) (A) 항 내지 3121 (a) (5) (D) 항 (연방 보험 기여법의 목적 상 임금으로 취급되지 않는 보수에 관한)에 포함 된 보상; 과.

(B) 급여가 제공 될 때 근로자가 그 급여를 근로자가 총소득에서 배제 할 수 있다고 믿는 것이 합리적 일 경우, 근로자에게 제공되거나 근로자를 대신하여 제공된 급여로 구성된 보수. 또한 보상에는 3121 (v) (1) 항에 기술 된 급여 삭감 기여금이 포함되지 않습니다.

(4) 보상위원회. 보상위원회는 본 section의 paragraph (e) (2)에 설명 된 성과 목표를 수립하고 관리 할 수있는 권한을 가진 공개 법인의 이사회 (이사 소위원회 포함)의위원회를 의미하며 성과 목표는 다음과 같다. 이 절의 (e) (5) 절에 설명 된대로 달성된다. 이사회의위원회는 상장 기업의 이사회 또는 해당되는 경우 이사회의 다른위원회가 비준 한 목적으로 만 성과 목표를 수립 할 권한이없는 것으로 취급되지 않습니다. 보상위원회의 구성에 관한 규칙은이 절의 (e) (3) 항을 참조하십시오.

(5) 거래법. Exchange Act는 1934 년 증권 거래법을 의미합니다.

(6) 예. 이 단락 (c)는 다음의 예를 통해 설명 될 수 있습니다.

(d) 수당 기준으로 지급되는 보상에 대한 예외. 이 절의 (b) 단락의 공제 한도는 수수료 기준으로 지급되는 보상에는 적용되지 않습니다. 이 목적을 위해 사실과 상황에 따라 보상금이 지급되는 개인의 개인 성과에 의해 직접적으로 발생한 소득으로 지급되는 것으로 판명 된 경우 수수료는 수수료 기준으로 지급됩니다. 비서직 또는 연구 서비스와 같은 지원 서비스가 소득 창출에 활용되기 때문에 보상이 개인에게 직접 귀속되는 것은 아닙니다. 그러나 회사의 사업 단위에서 발생한 소득과 같은보다 광범위한 성과 기준으로 보상이 지급되는 경우 보상은 본 단락 (d)에 의거하여 제공된 예외에 해당하지 않습니다.

(e) 자격 기반 성과 보상에 대한 예외 -

(1) 일반적으로. 본 조항의 (b) 단락의 공제 한도는 적격 한 성과급 보상에는 적용되지 않습니다. 적격 한 성과급 보상은 본 section의 paragraph (e) (2)에서 (e) (5)까지의 모든 요건을 충족시키는 보상이다.

(2) 성과 목표 요구 사항 -

(i) 미리 정해진 목표. 공인 된 성과 중심 보상은 하나 이상의 사전에 정해진 객관적인 성과 목표의 달성으로 인해서 만 지급되어야합니다. 성과 목표는 성과 목표와 관련된 용역 기간의 개시 후 90 일 이내에 보상위원회가 서면으로 확정 한 경우에 확정 된 것으로 간주한다. 단, 보상위원회가 실제적으로 그 결과가 실질적으로 불확실하다면 목표를 수립한다. 그러나 성과 목표의 25 %가 (목표가 성립 될 때 성실히 계획된대로) 경과 한 후에 성취 된 것으로 간주되는 성과 목표는 결코 성립되지 않을 것입니다. 성과 목표는 관련 사실을 알고있는 제 3자가 목표 달성 여부를 결정할 수 있다면 객관적입니다. 성과 목표는 개인, 사업 단위 또는 회사 전체에 적용되는 하나 이상의 비즈니스 기준을 기반으로 할 수 있습니다. 이러한 비즈니스 기준에는 주가, 시장 점유율, 판매, 주당 순이익, 자본 수익률 또는 비용이 포함될 수 있습니다. 그러나 성과 목표는 비즈니스 기준에 따라 증가 또는 긍정적 인 결과를 기반으로 할 필요는 없으며, 예를 들어 현 상태를 유지하거나 경제적 손실을 제한하는 것 (각각의 경우 특정 비즈니스 기준을 참조하여 측정) . 성과 목표에는 피고용인의 단순한 계속 고용은 포함되지 않는다. 따라서 계속 고용에만 근거한 가득 조 건의 조항은 성과 목표를 구성하지 않을 것입니다. 주식 가격의 상승에 근거한 보상 규정에 대해서는 본 section의 paragraph (e) (2) (vi)를 참조하십시오.

(ii) 객관적인 보상 공식. 미리 정해진 성과 목표는 목표에 도달하면 직원에게 지불 할 보상 액수를 계산하는 방법을 객관적인 공식 또는 표준의 관점에서 명시해야합니다. 공식 또는 표준은 관련 성과 결과를 알고있는 제 3자가 직원에게 지불 할 금액을 계산할 수있는 경우 객관적입니다. 또한 수식이나 표준은 적용되는 개별 직원 또는 직원 클래스를 지정해야합니다.

(A) 객관적인 공식 또는 기준의 조건은 달리 달성 할 때 지불해야 할 보상 금액을 증가시키는 재량을 배제해야한다. 보상위원회가 목표 달성에 따른 보상이나 기타 경제적 이익을 줄이거 나 제거했기 때문에 성과 목표는 본항 (e) (2) (iii)의 목적 상 임의적 인 것이 아닙니다. 그러나 한 직원에 대한 부정적 재량권 행사는 다른 직원에게 지급해야하는 금액을 증가시키는 것을 허용하지 않습니다. 예를 들어, 보너스 풀의 경우, 각 직원에게 지급되는 금액이 풀의 비율로 표시되는 경우 풀의 이러한 개별 비율의 합계가 100 %를 초과 할 수 없습니다. 객관적인 공식 또는 표준의 조건이 성과 목표를 달성 할 때 지불해야하는 보상 금액의 전부 또는 일부가 급여 또는 기본의 비율에 기초한 경우에만 보상 금액을 증가시키는 재량권을 배제하지 못하는 경우 성과 목표가 확립 된 시점에 급료 또는 기본급의 달러 금액이 고정되어 있지 않은 경우, 목표 수식 또는 표준은 본 절 (e) (2) (iii)의 목적 상 임의로 간주되지 않습니다. 지불 할 최대 금액은 그 시점에 고정되어 있습니다.

(B) 성과 목표를 달성 한 후 또는 그 후에 보상금을 지불하고, 목표 달성 후 더 빠른 날짜에 보상금 지급을 가속화하기 위해 변경이 이루어진 경우, 그 변경은 금액 인상으로 처리됩니다 지급 된 보상 금액이 시간 가치를 합리적으로 반영하여 할인되지 않는 한 성과 목표 달성시 또는 그 이후에 보상금이 지급되고 나중에 보상금 지급을 연기하도록 변경 한 경우, 원래 그 근로자에게 빚진 금액을 초과하여 지급 된 금액은 추가 금액이 합리적인 이자율 또는 하나 이상의 사전 결정된 실제 투자 (원래 부담해야하는 자산과 관련된 자산이 실제로 투자되었는지 여부에 따라)에 따라 지급되는 금액이 증가하는 경우 보상 금액이 증가합니다. 나중에 고용주는 특정 투자에 대한 실제 수익률 (투자 가치의 감소뿐만 아니라 감소도 포함)을 기준으로합니다. 보상이 재산 형태로 지급되는 경우, 목표 달성 후 해당 자산의 이전 시점 변경은이 단락 (e) (2)의 목적을위한 보상 금액의 증가로 간주되지 않으며, (iii). 따라서, 예를 들어, 주식 부여의 조건이 성과 목표를 달성 한 후에 양도 될 주식을 제공하고 주식의 양도가 가득 된 일정의 적용을받는다면, 가득되거나 또는 연기되는 가득 일정의 변경 주식 양도는 실적 목표에 따라 지불 할 금액의 증가로 간주되지 않습니다.

(C) 스톡 옵션, 주식 보상 권리 또는 기타 주식 기준 보상에 기인하는 보상은 (e) (2)의 요건을 충족시키지 못하는 것은 아니며, 주식 분할 또는 배당과 같은 기업 자본화의 변화 또는 회사의 다른 회사로의 합병, 두 개 이상의 회사를 다른 회사로 통합하는 것, 법인을 분리하는 것 (예 : 법인의 주식 또는 재산의 분담 또는 기타 배분), 회사의 재구성 (그러한 재구성이 제 368 조의 정의에 포함되는지 여부와 상관없이), 또는 회사의 부분적 또는 완전한 청산.

(iv) 교부금 교부 결정. 보상이 본 절 (e) (2)의 요건을 충족시키는 지의 여부는 일반적으로 보조금 기준으로 결정되어야한다. 따라서 스톡 옵션 보조금에 기인하는 보상이 본 절 (e) (2)의 요건을 충족시키는 지 여부는 일반적으로 특정 보조금을 기초로 결정되며 다른 옵션 보조금의 조건이나 기타 조건에 상관없이 결정됩니다 동일한 직원 또는 다른 직원에게 보상금 지급. 추가 예로서, 단락 (e) (2) (vi)에 규정 된 경우를 제외하고, 제한 주식 또는 기타 주식 기준 보상이 본 절 (e) (2)의 요건을 충족시키는 지 여부는 배당금, 배당금 또는 주식과 관련한 기타 유사한 배당금은 주식 기준 보상에 따라 성과 목표를 달성하기 전에 지불해야합니다. 이 단락 (e) (2) (iv)에 따라 별도의 보조금으로 취급되는 주식과 관련한 배당금, 배당금 또는 이에 상응하는 기타 배당금은 본 절 (e)의 요건을 별도로 충족하지 않는 한 성과에 근거한 보상이 아닙니다 2).

(v) 성과 목표 달성에 따라 보상. 성과 목표 달성 여부에 관계없이 근로자가 보상의 전부 또는 일부를 수령한다는 사실과 상황이 명시하는 경우, 보상은 본 paragraph (e) (2)의 요구 사항을 충족시키지 못합니다. 따라서 보조금이나 보상에 따른 보상금 지급이 실적 목표 달성에 명목상 또는 부분적으로 만 필요한 경우 보조금이나 보조금으로 지급되는 보상금은 실적 기반으로 간주되지 않습니다. 예를 들어, 근로자가 두 가지 중 하나의 계약에 따라 보너스를받을 자격이있는 경우, 그렇지 않은 경우 성과 기반의 계약에 따라 성과 목표를 달성하지 못한 경우 부적격 기반의 계약에 의한 지급이 이루어지는 경우, 본항 (e) (2)의 요건을 충족시킨다. 보상은 성과 목표를 달성하기 전에 실제로 발생한 사건을 고려하여 보상 되기는하지만 사망, 장애 또는 소유권 또는 통제권 변경시 보상금 지급이 허용되기 때문에 보상만으로 성과 기반 보상을받을 수 있습니다 (e) (2)의 요건을 충족시키지 못한다. 본 section의 paragraph (e) (2) (iv)의 첫 번째 문장에 명시된 일반적인 규칙의 예외로서, 본 paragraph (e) (2)의 첫 번째 문장에서 언급 된 사실 및 상황 결정은, (v) 직원에게 보상을 제공하는 모든 계획, 약정 및 계약을 고려하여 작성되어야합니다.

(vi) 스톡 옵션 및 주식 보상 권리 요구 사항의 적용 -

(A) 일반적으로. 스톡 옵션 또는 주식 보상 권리로 인한 보상은 보상위원회가 보조금 또는 보상을 한 경우 본 section (e) (2)의 요구 사항을 충족하는 것으로 간주됩니다. the plan under which the option or right is granted states the maximum number of shares with respect to which options or rights may be granted during a specified period to any individual employee; and, under the terms of the option or right, the amount of compensation the employee may receive is based solely on an increase in the value of the stock after the date of the grant or award. A plan may satisfy the requirement to provide a maximum number of shares with respect to which stock options and stock appreciation rights may be granted to any individual employee during a specified period if the plan specifies an aggregate maximum number of shares with respect to which stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based awards that may be granted to any individual employee during a specified period under a plan approved by shareholders in accordance with § 1.162-27(e)(4). If the amount of compensation the employee may receive under the grant or award is not based solely on an increase in the value of the stock after the date of grant or award (for example, in the case of restricted stock, or an option that is granted with an exercise price that is less than the fair market value of the stock as of the date of grant), none of the compensation attributable to the grant or award is qualified performance-based compensation under this paragraph (e)(2)(vi)(A). Whether a stock option grant is based solely on an increase in the value of the stock after the date of grant is determined without regard to any dividend equivalent that may be payable, provided that payment of the dividend equivalent is not made contingent on the exercise of the option. The rule that the compensation attributable to a stock option or stock appreciation right must be based solely on an increase in the value of the stock after the date of grant or award does not apply if the grant or award is made on account of, or if the vesting or exercisability of the grant or award is contingent on, the attainment of a performance goal that satisfies the requirements of this paragraph (e)(2).

(B) Cancellation and repricing. Compensation attributable to a stock option or stock appreciation right does not satisfy the requirements of this paragraph (e)(2) to the extent that the number of options granted exceeds the maximum number of shares for which options may be granted to the employee as specified in the plan. If an option is canceled, the canceled option continues to be counted against the maximum number of shares for which options may be granted to the employee under the plan. If, after grant, the exercise price of an option is reduced, the transaction is treated as a cancellation of the option and a grant of a new option. In such case, both the option that is deemed to be canceled and the option that is deemed to be granted reduce the maximum number of shares for which options may be granted to the employee under the plan. This paragraph (e)(2)(vi)(B) also applies in the case of a stock appreciation right where, after the award is made, the base amount on which stock appreciation is calculated is reduced to reflect a reduction in the fair market value of stock.

(vii) Examples. This paragraph (e)(2) may be illustrated by the following examples:

(3) Outside directors -

(i) General rule. The performance goal under which compensation is paid must be established by a compensation committee comprised solely of two or more outside directors. A director is an outside director if the director -

(A) Is not a current employee of the publicly held corporation;

(B) Is not a former employee of the publicly held corporation who receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year;

(C) Has not been an officer of the publicly held corporation; 과.

(D) Does not receive remuneration from the publicly held corporation, either directly or indirectly, in any capacity other than as a director. For this purpose, remuneration includes any payment in exchange for goods or services.

(ii) Remuneration received. For purposes of this paragraph (e)(3), remuneration is received, directly or indirectly, by a director in each of the following circumstances:

(A) If remuneration is paid, directly or indirectly, to the director personally or to an entity in which the director has a beneficial ownership interest of greater than 50 percent. For this purpose, remuneration is considered paid when actually paid (and throughout the remainder of that taxable year of the corporation) and, if earlier, throughout the period when a contract or agreement to pay remuneration is outstanding.

(B) If remuneration, other than de minimis remuneration, was paid by the publicly held corporation in its preceding taxable year to an entity in which the director has a beneficial ownership interest of at least 5 percent but not more than 50 percent. For this purpose, remuneration is considered paid when actually paid or, if earlier, when the publicly held corporation becomes liable to pay it.

(C) If remuneration, other than de minimis remuneration, was paid by the publicly held corporation in its preceding taxable year to an entity by which the director is employed or self-employed other than as a director. For this purpose, remuneration is considered paid when actually paid or, if earlier, when the publicly held corporation becomes liable to pay it.

(iii) De minimis remuneration -

(A) In general. For purposes of paragraphs (e)(3)(ii)(B) and (C) of this section, remuneration that was paid by the publicly held corporation in its preceding taxable year to an entity is de minimis if payments to the entity did not exceed 5 percent of the gross revenue of the entity for its taxable year ending with or within that preceding taxable year of the publicly held corporation.

(B) Remuneration for personal services and substantial owners. Notwithstanding paragraph (e)(3)(iii)(A) of this section, remuneration in excess of $60,000 is not de minimis if the remuneration is paid to an entity described in paragraph (e)(3)(ii)(B) of this section, or is paid for personal services to an entity described in paragraph (e)(3)(ii)(C) of this section.

(iv) Remuneration for personal services. For purposes of paragraph (e)(3)(iii)(B) of this section, remuneration from a publicly held corporation is for personal services if -

(A) The remuneration is paid to an entity for personal or professional services, consisting of legal, accounting, investment banking, and management consulting services (and other similar services that may be specified by the Commissioner in revenue rulings, notices, or other guidance published in the Internal Revenue Bulletin), performed for the publicly held corporation, and the remuneration is not for services that are incidental to the purchase of goods or to the purchase of services that are not personal services; 과.

(B) The director performs significant services (whether or not as an employee) for the corporation, division, or similar organization (within the entity) that actually provides the services described in paragraph (e)(3)(iv)(A) of this section to the publicly held corporation, or more than 50 percent of the entity's gross revenues (for the entity's preceding taxable year) are derived from that corporation, subsidiary, or similar organization.

(v) Entity defined. For purposes of this paragraph (e)(3), entity means an organization that is a sole proprietorship, trust, estate, partnership, or corporation. The term also includes an affiliated group of corporations as defined in section 1504 (determined without regard to section 1504(b)) and a group of organizations that would be an affiliated group but for the fact that one or more of the organizations are not incorporated. However, the aggregation rules referred to in the preceding sentence do not apply for purposes of determining whether a director has a beneficial ownership interest of at least 5 percent or greater than 50 percent.

(vi) Employees and former officers. Whether a director is an employee or a former officer is determined on the basis of the facts at the time that the individual is serving as a director on the compensation committee. Thus, a director is not precluded from being an outside director solely because the director is a former officer of a corporation that previously was an affiliated corporation of the publicly held corporation. For example, a director of a parent corporation of an affiliated group is not precluded from being an outside director solely because that director is a former officer of an affiliated subsidiary that was spun off or liquidated. However, an outside director would no longer be an outside director if a corporation in which the director was previously an officer became an affiliated corporation of the publicly held corporation.

(vii) Officer. Solely for purposes of this paragraph (e)(3), officer means an administrative executive who is or was in regular and continued service. The term implies continuity of service and excludes those employed for a special and single transaction. An individual who merely has (or had) the title of officer but not the authority of an officer is not considered an officer. The determination of whether an individual is or was an officer is based on all of the facts and circumstances in the particular case, including without limitation the source of the individual's authority, the term for which the individual is elected or appointed, and the nature and extent of the individual's duties.

(viii) Members of affiliated groups. For purposes of this paragraph (e)(3), the outside directors of the publicly held member of an affiliated group are treated as the outside directors of all members of the affiliated group.

(ix) Examples. This paragraph (e)(3) may be illustrated by the following examples:

(ii) Thus, in 1998, 1999, and 2000, remuneration is considered paid by Corporation W indirectly to C personally under paragraph (e)(3)(ii)(A) of this section. Accordingly, in 1998, 1999, and 2000, C is not an outside director of Corporation W. The result would have been the same if Corporation W had obtained appropriate representations but nevertheless had reason to believe that it was paying remuneration indirectly to C personally.

(4) Shareholder approval requirement -

(i) General rule. The material terms of the performance goal under which the compensation is to be paid must be disclosed to and subsequently approved by the shareholders of the publicly held corporation before the compensation is paid. The requirements of this paragraph (e)(4) are not satisfied if the compensation would be paid regardless of whether the material terms are approved by shareholders. The material terms include the employees eligible to receive compensation; a description of the business criteria on which the performance goal is based; and either the maximum amount of compensation that could be paid to any employee or the formula used to calculate the amount of compensation to be paid to the employee if the performance goal is attained (except that, in the case of a formula based, in whole or in part, on a percentage of salary or base pay, the maximum dollar amount of compensation that could be paid to the employee must be disclosed).

(ii) Eligible employees. Disclosure of the employees eligible to receive compensation need not be so specific as to identify the particular individuals by name. A general description of the class of eligible employees by title or class is sufficient, such as the chief executive officer and vice presidents, or all salaried employees, all executive officers, or all key employees.

(iii) Description of business criteria -

(A) In general. Disclosure of the business criteria on which the performance goal is based need not include the specific targets that must be satisfied under the performance goal. For example, if a bonus plan provides that a bonus will be paid if earnings per share increase by 10 percent, the 10-percent figure is a target that need not be disclosed to shareholders. However, in that case, disclosure must be made that the bonus plan is based on an earnings-per-share business criterion. In the case of a plan under which employees may be granted stock options or stock appreciation rights, no specific description of the business criteria is required if the grants or awards are based on a stock price that is no less than current fair market value.

(B) Disclosure of confidential information. The requirements of this paragraph (e)(4) may be satisfied even though information that otherwise would be a material term of a performance goal is not disclosed to shareholders, provided that the compensation committee determines that the information is confidential commercial or business information, the disclosure of which would have an adverse effect on the publicly held corporation. Whether disclosure would adversely affect the corporation is determined on the basis of the facts and circumstances. If the compensation committee makes such a determination, the disclosure to shareholders must state the compensation committee's belief that the information is confidential commercial or business information, the disclosure of which would adversely affect the company. In addition, the ability not to disclose confidential information does not eliminate the requirement that disclosure be made of the maximum amount of compensation that is payable to an individual under a performance goal. Confidential information does not include the identity of an executive or the class of executives to which a performance goal applies or the amount of compensation that is payable if the goal is satisfied.

(iv) Description of compensation. Disclosure as to the compensation payable under a performance goal must be specific enough so that shareholders can determine the maximum amount of compensation that could be paid to any individual employee during a specified period. If the terms of the performance goal do not provide for a maximum dollar amount, the disclosure must include the formula under which the compensation would be calculated. Thus, if compensation attributable to the exercise of stock options is equal to the difference between the exercise price and the current value of the stock, then disclosure of the maximum number of shares for which grants may be made to any individual employee during a specified period and the exercise price of those options (for example, fair market value on date of grant) would satisfy the requirements of this paragraph (e)(4)(iv). In that case, shareholders could calculate the maximum amount of compensation that would be attributable to the exercise of options on the basis of their assumptions as to the future stock price.

(v) Disclosure requirements of the Securities and Exchange Commission. To the extent not otherwise specifically provided in this paragraph (e)(4), whether the material terms of a performance goal are adequately disclosed to shareholders is determined under the same standards as apply under the Exchange Act.

(vi) Frequency of disclosure. Once the material terms of a performance goal are disclosed to and approved by shareholders, no additional disclosure or approval is required unless the compensation committee changes the material terms of the performance goal. If, however, the compensation committee has authority to change the targets under a performance goal after shareholder approval of the goal, material terms of the performance goal must be disclosed to and reapproved by shareholders no later than the first shareholder meeting that occurs in the fifth year following the year in which shareholders previously approved the performance goal.

(vii) Shareholder vote. For purposes of this paragraph (e)(4), the material terms of a performance goal are approved by shareholders if, in a separate vote, a majority of the votes cast on the issue (including abstentions to the extent abstentions are counted as voting under applicable state law) are cast in favor of approval.

(viii) Members of affiliated group. For purposes of this paragraph (e)(4), the shareholders of the publicly held member of the affiliated group are treated as the shareholders of all members of the affiliated group.

(ix) Examples. This paragraph (e)(4) may be illustrated by the following examples:

(5) Compensation committee certification. The compensation committee must certify in writing prior to payment of the compensation that the performance goals and any other material terms were in fact satisfied. For this purpose, approved minutes of the compensation committee meeting in which the certification is made are treated as a written certification. Certification by the compensation committee is not required for compensation that is attributable solely to the increase in the value of the stock of the publicly held corporation.

(f) Companies that become publicly held, spinoffs, and similar transactions -

(1) In general. In the case of a corporation that was not a publicly held corporation and then becomes a publicly held corporation, the deduction limit of paragraph (b) of this section does not apply to any remuneration paid pursuant to a compensation plan or agreement that existed during the period in which the corporation was not publicly held. However, in the case of such a corporation that becomes publicly held in connection with an initial public offering, this relief applies only to the extent that the prospectus accompanying the initial public offering disclosed information concerning those plans or agreements that satisfied all applicable securities laws then in effect. In accordance with paragraph (c)(1)(ii) of this section, a corporation that is a member of an affiliated group that includes a publicly held corporation is considered publicly held and, therefore, cannot rely on this paragraph (f)(1).

(2) Reliance period. Paragraph (f)(1) of this section may be relied upon until the earliest of -

(i) The expiration of the plan or agreement;

(ii) The material modification of the plan or agreement, within the meaning of paragraph (h)(1)(iii) of this section;

(iii) The issuance of all employer stock and other compensation that has been allocated under the plan; 또는.

(iv) The first meeting of shareholders at which directors are to be elected that occurs after the close of the third calendar year following the calendar year in which the initial public offering occurs or, in the case of a privately held corporation that becomes publicly held without an initial public offering, the first calendar year following the calendar year in which the corporation becomes publicly held.

(3) Stock-based compensation. Paragraph (f)(1) of this section will apply to any compensation received pursuant to the exercise of a stock option or stock appreciation right, or the substantial vesting of restricted property, granted under a plan or agreement described in paragraph (f)(1) of this section if the grant occurs on or before the earliest of the events specified in paragraph (f)(2) of this section. This paragraph does not apply to any form of stock-based compensation other than the forms listed in the immediately preceding sentence. Thus, for example, compensation payable under a restricted stock unit arrangement or a phantom stock arrangement must be paid, rather than merely granted, on or before the occurrence of the earliest of the events specified in paragraph (f)(2) of this section in order for paragraph (f)(1) of this section to apply.

(4) Subsidiaries that become separate publicly held corporations -

(i) In general. If a subsidiary that is a member of the affiliated group described in paragraph (c)(1)(ii) of this section becomes a separate publicly held corporation (whether by spinoff or otherwise), any remuneration paid to covered employees of the new publicly held corporation will satisfy the exception for performance-based compensation described in paragraph (e) of this section if the conditions in either paragraph (f)(4)(ii) or (f)(4)(iii) of this section are satisfied.

(ii) Prior establishment and approval. Remuneration satisfies the requirements of this paragraph (f)(4)(ii) if the remuneration satisfies the requirements for performance-based compensation set forth in paragraphs (e)(2), (e)(3), and (e)(4) of this section (by application of paragraphs (e)(3)(viii) and (e)(4)(viii) of this section) before the corporation becomes a separate publicly held corporation, and the certification required by paragraph (e)(5) of this section is made by the compensation committee of the new publicly held corporation (but if the performance goals are attained before the corporation becomes a separate publicly held corporation, the certification may be made by the compensation committee referred to in paragraph (e)(3)(viii) of this section before it becomes a separate publicly held corporation). Thus, this paragraph (f)(4)(ii) requires that the outside directors and shareholders (within the meaning of paragraphs (e)(3)(viii) and (e)(4)(viii) of this section) of the corporation before it becomes a separate publicly held corporation establish and approve, respectively, the performance-based compensation for the covered employees of the new publicly held corporation in accordance with paragraphs (e)(3) and (e)(4) of this section.

(iii) Transition period. Remuneration satisfies the requirements of this paragraph (f)(4)(iii) if the remuneration satisfies all of the requirements of paragraphs (e)(2), (e)(3), and (e)(5) of this section. The outside directors (within the meaning of paragraph (e)(3)(viii) of this section) of the corporation before it becomes a separate publicly held corporation, or the outside directors of the new publicly held corporation, may establish and administer the performance goals for the covered employees of the new publicly held corporation for purposes of satisfying the requirements of paragraphs (e)(2) and (e)(3) of this section. The certification required by paragraph (e)(5) of this section must be made by the compensation committee of the new publicly held corporation. However, a taxpayer may rely on this paragraph (f)(4)(iii) to satisfy the requirements of paragraph (e) of this section only for compensation paid, or stock options, stock appreciation rights, or restricted property granted, prior to the first regularly scheduled meeting of the shareholders of the new publicly held corporation that occurs more than 12 months after the date the corporation becomes a separate publicly held corporation. Compensation paid, or stock options, stock appreciation rights, or restricted property granted, on or after the date of that meeting of shareholders must satisfy all requirements of paragraph (e) of this section, including the shareholder approval requirement of paragraph (e)(4) of this section, in order to satisfy the requirements for performance-based compensation.

(5) Example. The following example illustrates the application of paragraph (f)(4)(ii) of this section:

(g) Coordination with disallowed excess parachute payments. The $1,000,000 limitation in paragraph (b) of this section is reduced (but not below zero) by the amount (if any) that would have been included in the compensation of the covered employee for the taxable year but for being disallowed by reason of section 280G. For example, assume that during a taxable year a corporation pays $1,500,000 to a covered employee and no portion satisfies the exception in paragraph (d) of this section for commissions or paragraph (e) of this section for qualified performance-based compensation. Of the $1,500,000, $600,000 is an excess parachute payment, as defined in section 280G(b)(1) and is disallowed by reason of that section. Because the excess parachute payment reduces the limitation of paragraph (b) of this section, the corporation can deduct $400,000, and $500,000 of the otherwise deductible amount is nondeductible by reason of section 162(m).

(h) Transition rules -

(1) Compensation payable under a written binding contract which was in effect on February 17, 1993 -

(i) General rule. The deduction limit of paragraph (b) of this section does not apply to any compensation payable under a written binding contract that was in effect on February 17, 1993. The preceding sentence does not apply unless, under applicable state law, the corporation is obligated to pay the compensation if the employee performs services. However, the deduction limit of paragraph (b) of this section does apply to a contract that is renewed after February 17, 1993. A written binding contract that is terminable or cancelable by the corporation after February 17, 1993, without the employee's consent is treated as a new contract as of the date that any such termination or cancellation, if made, would be effective. Thus, for example, if the terms of a contract provide that it will be automatically renewed as of a certain date unless either the corporation or the employee gives notice of termination of the contract at least 30 days before that date, the contract is treated as a new contract as of the date that termination would be effective if that notice were given. Similarly, for example, if the terms of a contract provide that the contract will be terminated or canceled as of a certain date unless either the corporation or the employee elects to renew within 30 days of that date, the contract is treated as renewed by the corporation as of that date. Alternatively, if the corporation will remain legally obligated by the terms of a contract beyond a certain date at the sole discretion of the employee, the contract will not be treated as a new contract as of that date if the employee exercises the discretion to keep the corporation bound to the contract. A contract is not treated as terminable or cancelable if it can be terminated or canceled only by terminating the employment relationship of the employee.

(ii) Compensation payable under a plan or arrangement. If a compensation plan or arrangement meets the requirements of paragraph (h)(1)(i) of this section, the compensation paid to an employee pursuant to the plan or arrangement will not be subject to the deduction limit of paragraph (b) of this section even though the employee was not eligible to participate in the plan as of February 17, 1993. However, the preceding sentence does not apply unless the employee was employed on February 17, 1993, by the corporation that maintained the plan or arrangement, or the employee had the right to participate in the plan or arrangement under a written binding contract as of that date.

(iii) Material modifications.

(A) Paragraph (h)(1)(i) of this section will not apply to any written binding contract that is materially modified. A material modification occurs when the contract is amended to increase the amount of compensation payable to the employee. If a binding written contract is materially modified, it is treated as a new contract entered into as of the date of the material modification. Thus, amounts received by an employee under the contract prior to a material modification are not affected, but amounts received subsequent to the material modification are not treated as paid under a binding, written contract described in paragraph (h)(1)(i) of this section.

(B) A modification of the contract that accelerates the payment of compensation will be treated as a material modification unless the amount of compensation paid is discounted to reasonably reflect the time value of money. If the contract is modified to defer the payment of compensation, any compensation paid in excess of the amount that was originally payable to the employee under the contract will not be treated as a material modification if the additional amount is based on either a reasonable rate of interest or one or more predetermined actual investments (whether or not assets associated with the amount originally owed are actually invested therein) such that the amount payable by the employer at the later date will be based on the actual rate of return of the specific investment (including any decrease as well as any increase in the value of the investment).

(C) The adoption of a supplemental contract or agreement that provides for increased compensation, or the payment of additional compensation, is a material modification of a binding, written contract where the facts and circumstances show that the additional compensation is paid on the basis of substantially the same elements or conditions as the compensation that is otherwise paid under the written binding contract. However, a material modification of a written binding contract does not include a supplemental payment that is equal to or less than a reasonable cost-of-living increase over the payment made in the preceding year under that written binding contract. In addition, a supplemental payment of compensation that satisfies the requirements of qualified performance-based compensation in paragraph (e) of this section will not be treated as a material modification.

(iv) Examples. The following examples illustrate the exception of this paragraph (h)(1):

(2) Special transition rule for outside directors. A director who is a disinterested director is treated as satisfying the requirements of an outside director under paragraph (e)(3) of this section until the first meeting of shareholders at which directors are to be elected that occurs on or after January 1, 1996. For purposes of this paragraph (h)(2) and paragraph (h)(3) of this section, a director is a disinterested director if the director is disinterested within the meaning of Rule 16b-3(c)(2)(i), 17 CFR 240.16b-3(c)(2)(i), under the Exchange Act (including the provisions of Rule 16b-3(d)(3), as in effect on April 30, 1991).

(3) Special transition rule for previously-approved plans - (i) In general. Any compensation paid under a plan or agreement approved by shareholders before December 20, 1993, is treated as satisfying the requirements of paragraphs (e)(3) and (e)(4) of this section, provided that the directors administering the plan or agreement are disinterested directors and the plan was approved by shareholders in a manner consistent with Rule 16b-3(b), 17 CFR 240.16b-3(b), under the Exchange Act or Rule 16b-3(a), 17 CFR 240.16b-3(a) (as contained in 17 CFR part 240 revised April 1, 1990). In addition, for purposes of satisfying the requirements of paragraph (e)(2)(vi) of this section, a plan or agreement is treated as stating a maximum number of shares with respect to which an option or right may be granted to any employee if the plan or agreement that was approved by the shareholders provided for an aggregate limit, consistent with Rule 16b-3(b), 17 CFR 250.16b-3(b), on the shares of employer stock with respect to which awards may be made under the plan or agreement.

(ii) Reliance period. The transition rule provided in this paragraph (h)(3) shall continue and may be relied upon until the earliest of -

(A) The expiration or material modification of the plan or agreement;

(B) The issuance of all employer stock and other compensation that has been allocated under the plan; 또는.

(C) The first meeting of shareholders at which directors are to be elected that occurs after December 31, 1996.

(iii) Stock-based compensation. This paragraph (h)(3) will apply to any compensation received pursuant to the exercise of a stock option or stock appreciation right, or the substantial vesting of restricted property, granted under a plan or agreement described in paragraph (h)(3)(i) of this section if the grant occurs on or before the earliest of the events specified in paragraph (h)(3)(ii) of this section.

(iv) Example. The following example illustrates the application of this paragraph (h)(3):

(j) Effective date -

(1) In general. Section 162(m) and this section apply to compensation that is otherwise deductible by the corporation in a taxable year beginning on or after January 1, 1994.

(2) Delayed effective date for certain provisions -

(i) Date on which remuneration is considered paid. Notwithstanding paragraph (j)(1) of this section, the rules in the second sentence of each of paragraphs (e)(3)(ii)(A), (e)(3)(ii)(B), and (e)(3)(ii)(C) of this section for determining the date or dates on which remuneration is considered paid to a director are effective for taxable years beginning on or after January 1, 1995. Prior to those taxable years, taxpayers must follow the rules in paragraphs (e)(3)(ii)(A), (e)(3)(ii)(B), and (e)(3)(ii)(C) of this section or another reasonable, good faith interpretation of section 162(m) with respect to the date or dates on which remuneration is considered paid to a director.

(ii) Separate treatment of publicly held subsidiaries. Notwithstanding paragraph (j)(1) of this section, the rule in paragraph (c)(1)(ii) of this section that treats publicly held subsidiaries as separately subject to section 162(m) is effective as of the first regularly scheduled meeting of the shareholders of the publicly held subsidiary that occurs more than 12 months after December 2, 1994. The rule for stock-based compensation set forth in paragraph (f)(3) of this section will apply for this purpose, except that the grant must occur before the shareholder meeting specified in this paragraph (j)(2)(ii). Taxpayers may choose to rely on the rule referred to in the first sentence of this paragraph (j)(2)(ii) for the period prior to the effective date of the rule.

(iii) Subsidiaries that become separate publicly held corporations. Notwithstanding paragraph (j)(1) of this section, if a subsidiary of a publicly held corporation becomes a separate publicly held corporation as described in paragraph (f)(4)(i) of this section, then, for the duration of the reliance period described in paragraph (f)(2) of this section, the rules of paragraph (f)(1) of this section are treated as applying (and the rules of paragraph (f)(4) of this section do not apply) to remuneration paid to covered employees of that new publicly held corporation pursuant to a plan or agreement that existed prior to December 2, 1994, provided that the treatment of that remuneration as performance-based is in accordance with a reasonable, good faith interpretation of section 162(m). However, if remuneration is paid to covered employees of that new publicly held corporation pursuant to a plan or agreement that existed prior to December 2, 1994, but that remuneration is not performance-based under a reasonable, good faith interpretation of section 162(m), the rules of paragraph (f)(1) of this section will be treated as applying only until the first regularly scheduled meeting of shareholders that occurs more than 12 months after December 2, 1994. The rules of paragraph (f)(4) of this section will apply as of that first regularly scheduled meeting. The rule for stock-based compensation set forth in paragraph (f)(3) of this section will apply for purposes of this paragraph (j)(2)(iii), except that the grant must occur before the shareholder meeting specified in the preceding sentence if the remuneration is not performance-based under a reasonable, good faith interpretation of section 162(m). Taxpayers may choose to rely on the rules of paragraph (f)(4) of this section for the period prior to the applicable effective date referred to in the first or second sentence of this paragraph (j)(2)(iii).

(iv) Bonus pools. Notwithstanding paragraph (j)(1) of this section, the rules in paragraph (e)(2)(iii)(A) that limit the sum of individual percentages of a bonus pool to 100 percent will not apply to remuneration paid before January 1, 2001, based on performance in any performance period that began prior to December 20, 1995.

(v) Compensation based on a percentage of salary or base pay. Notwithstanding paragraph (j)(1) of this section, the requirement in paragraph (e)(4)(i) of this section that, in the case of certain formulas based on a percentage of salary or base pay, a corporation disclose to shareholders the maximum dollar amount of compensation that could be paid to the employee, will apply only to plans approved by shareholders after April 30, 1995.

(vi) The modifications to paragraphs (e)(2)(vi)(A), (e)(2)(vii) Example 9, and (e)(4)(iv) of this section concerning the maximum number of shares with respect to which a stock option or stock appreciation right that may be granted and the amount of compensation that may be paid to any individual employee apply to compensation attributable to stock options and stock appreciation rights that are granted on or after June 24, 2011. The last two sentences of § 1.162-27(f)(3) apply to remuneration that is otherwise deductible resulting from a stock option, stock appreciation right, restricted stock (or other property), restricted stock unit, or any other form of equity-based remuneration that is granted on or after April 1, 2015.

이것은 본 CFR Part에 대한 규칙 제정 권한을 제공하는 미국 법전 섹션, Statutes at Large, 공법 및 대통령 문서 목록입니다.

데이터베이스를 매주 새로 고침해도 정확하거나 최신 상태가 보장되지는 않습니다. More limitations on accuracy are described at the GPO site.

IRS Clarifies Rules under §162(m) of Internal Revenue Code on Deductibility of Certain Compensation.

The IRS has proposed Treasury Regulations that clarify the performance-based compensation exception under Section 162(m) of the Internal Revenue Code, which generally precludes a deduction by any publicly held corporation of compensation paid to certain high level employees to the extent the compensation exceeds $1,000,000. The Treasury Regulations, proposed on June 24, 2011, clarify that in order for stock options and rights to qualify as performance-based compensation, a plan must state the maximum number of shares with respect to which the stock options or rights may be granted during a specified time to any employee. In addition, the proposed Treasury Regulations clarify that restricted stock units and phantom stock awards granted during the “transition period” (as explained below) will not qualify as performance-based compensation if they are paid after the end of such period. These clarifications may require changes to, and new shareholder approval of, an employer’s equity plan.

Clarification of the Maximum Number of Shares Disclosure Requirement.

In order to satisfy the exception for performance-based compensation with respect to stock options and stock appreciation rights, the plan under which the stock options or stock appreciation rights are granted must state the maximum number of shares with respect to which options or rights may be granted during a specified time to any employee . The proposed Treasury Regulations under Section 162(m) clarify that if a plan states the maximum number of shares that may be granted but does not contain a per-employee limitation on the number of options or rights that may be granted, then any compensation attributable to the stock options or rights under the plan is not performance-based compensation. Although this is a clarification rather than a substantive change, we recommend that clients review their existing equity plans to ensure compliance with this clarification. If the proposed Treasury Regulations are finalized without change and without a transition rule, as of the effective date of such regulations, any plan that fails to include the per-employee limitation described above will need to be amended and reapproved by shareholders in order for options and rights granted under the plan to qualify as performance-based compensation.

The text of the proposed Treasury Regulations indicate that this clarification is effective as of June 24, 2011, once the proposed Treasury Regulations are finalized, however, the Preamble to the proposed Treasury Regulations states that they will apply to taxable years ending on or after the date of publication of the rule as final Treasury Regulations. We anticipate that the final Treasury Regulations will clarify the effective date.

Section 162(m) Transition Rule Guidance for Private Companies that Become Public.

The proposed Treasury Regulations also provide additional guidance concerning the transition rules under Section 162(m) that apply when a company becomes a publicly held corporation subject to Section 162(m).

The Treasury Regulations under Section 162(m) provide that in the case of a corporation that was not a publicly held corporation and then becomes a publicly held corporation, the $1,000,000 deduction limit “does not apply to any remuneration paid pursuant to a compensation plan or agreement that existed during the period in which the corporation was not publicly held.” If a corporation becomes publicly held in connection with an initial public offering (“IPO”), then the relief provided in the Treasury Regulations applies only to the extent that the prospectus accompanying the IPO disclosed information concerning the existing compensation plans or agreements and satisfied all applicable securities laws.

The Treasury Regulations provide that the relief applies to any compensation received pursuant the exercise of a stock option or stock appreciation right, or the substantial vesting of restricted property if the grant occurs on or before the end of the Transition Period.

Practitioners have asked whether compensation payable under a restricted stock unit arrangement or a phantom stock arrangement is eligible for this special transition rule that applies to stock options, stock appreciation rights and restricted property. (A restricted stock unit is a right to an amount based on the value of the employer's stock, and which is payable in cash, shares of the stock, or other property, following the satisfaction of a specified vesting condition. Compensation payable under a phantom stock arrangement is compensation that is paid at a future date in cash or in property based on the value of the employer's stock.)

The proposed Treasury Regulations clarify that only compensation attributable to stock options, stock appreciation rights and restricted property is covered under the special transition rule discussed above. Thus, any company attempting to avail itself of the special transition rules in the Section 162(m) Treasury Regulations should be aware that unless restricted stock units and phantom stock arrangements are paid out prior to the end of the Transition Period, such payments will be subject to the $1,000,000 deduction limit under Section 162(m). Companies should keep in mind that to the extent restricted stock units and phantom stock arrangements are subject to Section 409A of the Internal Revenue Code, accelerating the payment date of such awards could have adverse tax consequences to participants.

Prior to publication of these proposed Treasury Regulations, the IRS ruled privately in a number of rulings that where a company that had become publicly traded granted restricted stock units during the Transition Period, payment in respect of the restricted stock units after the close of the Transition Period was not subject to the $1 million deduction limit. See Priv. Ltr. Ruls. 200449012 and 200406026.

The text of the proposed Treasury Regulations provides that this new transition rule will apply after the date of the publication of the proposed Treasury Regulations as final Treasury Regulations in the Federal Register, however, the Preamble to the proposed Treasury Regulations state that they will apply to taxable years ending on or after the date of publication of the rule as final Treasury Regulations. We anticipate that the final Treasury Regulations will clarify the effective date.

©2011 Jackson Lewis P. C. This Update is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between Jackson Lewis and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis.

This Update may be considered attorney advertising in some states. Furthermore, prior results do not guarantee a similar outcome.

Jackson Lewis P. C. represents management exclusively in workplace law and related litigation. Our attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies. For more information, please contact the attorney(s) listed or the Jackson Lewis attorney with whom you regularly work.

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Know your limits! Section 162(m) and excess equity grants.

In the past few years there has been an uptick in stockholder derivative litigation related to equity compensation granted to named executive officers that exceed the plan share limits. The claims against the companies include breach of fiduciary duty, waste of corporate assets, unjust enrichment and false or misleading disclosures. At the core of these claims is Section 162(m) of the Internal Revenue Code. Section 162(m) limits to $1 million the compensation expense deduction a publicly-traded company can take with respect to compensation of certain named executive officers or "covered employees." Excluded from the Section 162(m) deduction limitation is compensation that qualifies as "performance-based," which includes stockholder approval requirements.

A stock option by its nature is performance-based, as the optionee generally receives a benefit only if the value of the stock at the time of exercise exceeds the exercise price. In addition to other requirements, Section 162(m) qualifies stock options 1 granted under a plan as "performance-based" if (i) the governing plan sets forth the maximum number of shares subject to stock options that may be awarded to an individual over a set period of time, (ii) the exercise price of the stock options are made at or above the stock's fair market value on the grant date, and (iii) the company's stockholders approve the plan. For other types of awards, the stockholders must approve the maximum amount that can be paid to an individual either through a fixed amount or a formula that allows a stockholder to calculate the maximum amount. Typically, a plan will set forth a maximum number of shares or value of shares that may be granted as a performance-based full-value award, for example, restricted stock units or restricted stock upon which vesting is conditioned upon the achievement of performance goals.

It is best practices for a company to avoid compromising the qualification of equity compensation as "performance-based" by taking preventative measures. For example, a company may have its stockholder services department calculate the maximum amount of shares that may be granted, under a stock option or full-value award, to any individual in advance of a meeting of the board of directors or compensation committee in which equity awards are to be approved. If a company finds that it has granted an equity award in excess of the Section 162(m) limits, the company should be able to correct the grant prior to payment, and preserve the grant's status as "performance-based," 2 as follows:

Obtain Stockholder Approval: the company may seek stockholder approval of the award prior to payment; however, seeking stockholder approval from a timing or cost perspective may be impractical. Cancel Excess Shares Subject to the Award: the company may cancel an award made in excess of the limits; provided that (a) the award is not a stock option, and (b) the awardee consents to the cancelation. Cancel the Award and Re-Grant Under a Separate Equity Plan: the Section 162(m) Treasury regulations provide that an option that is canceled "continues to be counted against the maximum number of shares for which options may be granted." Thus, the cancelation of all or a portion of the stock option award will not preserve its performance-based qualification. The new stock option award would have to be granted under a separate stockholder approved plan within the limits of such separate plan.

A cancellation and re-grant of a stock option is not without challenges. The company may not wish to tackle the complexities of re-granting a stock option at the original exercise price, if the stock price has increased, as the re-grant would be considered a discounted stock option and subject to Section 409A of the Internal Revenue Code. Nevertheless, unless the plan has a provision invalidating an excess grant, the cancellation of the stock option is an adverse action requiring the consent of the optionee. If the stock price has decreased, the company would be prudent to re-grant the stock option at the original exercise price as a re-grant at a lower price may be deemed a repricing, which would require stockholder approval under certain listing rules.

A company should be aware that a grant in excess of the plan limits will not always create a tax issue. For example, a company's principal financial officer is not currently considered a "covered employee" subject to the Section 162(m) limitation, so an excess grant to such an officer may be deductible even though his or her compensation is in excess of $1 million. Also, whether or not an award is deductible may not matter to a company that is currently operating at a loss.

We recommend that companies conduct an internal audit of their equity plans in advance of receiving a demand letter from, or notice of a lawsuit filed by, a stockholder. We at King & Spalding are ready to assist you.