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December 21, 2017

Stroock Special Bulletin

By: Brian A. Friederich

The reconciliation of the House and Senate versions of the Tax Cut and Jobs Act, the sweeping tax reform bill overhauling the US federal income tax code (the “Tax Reform Bill”), has been finalized and is expected to be signed by the President imminently.  The Tax Reform Bill (i) significantly expands the application of the Internal Revenue Code of 1986, as amended, Section 162(m) $1 million deduction limit, including by eliminating the exception for performance-based compensation and (ii) introduces a new 21 percent tax on certain compensation paid to executives of tax-exempt organizations. 
This Stroock Special Bulletin provides an overview of these changes, and other significant ways in which the Tax Reform Bill will impact executive compensation programs.

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