Compensation committee passes Sec. 162(m) muster with recusal of non-outside directors. (IRC s. 162(m)): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on June 1, 1998. The length of the article is 664 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The IRS has ruled in Letter ruling 9811029 regarding the IRC section 162(m) exemption from the general disallowance of deductions for amounts paid to individual employees in excess of $1 million. The requirements regarding statutory qualified performance-based compensation are met if inside board directors recuse themselves from the compensation committee and two or more outside board directors remain. The result is that an acceptable subcommittee of outside directors exists which satisfy statutory requirements.

Citation Details
Title: Compensation committee passes Sec. 162(m) muster with recusal of non-outside directors. (IRC s. 162(m))
Author: Peter I. Elinsky
Publication:The Tax Adviser (Magazine/Journal)
Date: June 1, 1998
Publisher: American Institute of CPA's
Volume: 29 Issue: n6 Page: 372(2)

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