Deloitte Tax LLP
The American Jobs Creation Act of 2004 (AJCA) drastically alters the landscape with respect to the design of executive compensation programs. New tax rules applicable to “nonqualified deferred compensation,” along with expected revisions in accounting for equity compensation, will have an impact on how most companies provide compensation to their executive groups. Also, employers will need to understand and respond to new Securites and Exchange Commission disclosure requirements and publicly announced Internal Revenue Service enforcement initiatives for both taxable and tax-exempt organizations.
The challenge in 2005 will be how to minimize changes to your deferred compensation programs while complying with the law. Moreover, your decisions must take into consideration issues around the design of arrangements that are globally optimal and that provide effective incentives.
Deloitte Tax LLP can help.
Learn more about how Employee Benefits Assessment can help you. (Requires Acrobat Reader)
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Source: Deloitte & Touche USA LLP - United States (English)
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