Recent corporate scandals have cast a harsh light on executive compensation practices ' including deferred compensation plans benefiting officers, directors and high-level executives. As part of the American Jobs Creation Act (the Act), signed by President Bush on Oct.
Executive Deferred Compensation: The Game Has Changed
Recent corporate scandals have cast a harsh light on executive compensation practices ' including deferred compensation plans benefiting officers, directors and high-level executives. As part of the American Jobs Creation Act signed by President Bush on Oct. 22, 2004, Congress added Section 409A to the Internal Revenue Code. Section 409A imposes numerous restrictions on non-qualified deferred compensation plans (NQDCs) and will introduce a new compliance regime in the executive compensation arena.
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