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Compensation Committees
The issue of nonprofit executive compensation has not left the news in recent months. The Internal Revenue Service's 'soft-contact' initiative, which began in June 2004, is nearing completion. Although the final results are not in, the numbers are impressive. The IRS has made approximately 1800 compliance contacts, 1200 of which have been compliance checks and 600 of which have been exams. See Official Discusses EO Executive Compensation Compliance Project, 2006 TNT 83-6. Two hundred of the compliance checks eventually led to exams. Id. In addition to the IRS effort, the federal Government Accountability Office (GAO) recently began sending out its own 'soft-contact-audit' letters to nonprofit hospitals and health systems. See Just Compensation? GAO Investigating Executive Pay At Not-for-Profits, available at http://www.modernhealthcare.com/article.cms?articleId=39479.
All this scrutiny should be cause for concern among tax-exempt health care organizations. A properly functioning compensation committee can be a great asset to a tax-exempt organization in making sure that compensation paid by the exempt organization does not give rise to taxes under the excess benefit transaction rules. This article focuses on the process of governance as it applies to compensation committees of tax-exempt organizations and on the role of the compensation committee in helping to avoid excess benefit transactions.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.