Stock-based compensation is a staple of senior executives and key management employees in privately held companies. In public companies it is typically broad based as well. In both publicly traded and privately held companies, employees are almost uniformly interested in a piece of the pie and a stake in their future. Shareholders and directors, on the other hand, seem to be more interested than ever in tying executive and employee compensation to the performance of the company. Whether a stock-based compensation strategy makes sense for your company or your client's company will depend on a number of factors. This article surveys the factors that may help you make that decision.
The IRS's final regulations under Code section 409A require that all deferred compensation arrangements must be in full compliance with Code section 409A effective as of January 1, 2009. To what extent does Code section 409A govern split-dollar life insurance arrangements? What compliance is required?