Non-Qualified Deferred Compensation

Many of our clients seek our assistance in establishing and maintaining stock option programs, both qualified and non-qualified (NQ's), stock appreciation rights (SARs) and other forms of equity participation arrangements such as phantom stock plans.  We also provide expertise in Section 83 unfunded deferred compensation arrangements, rabbi trust arrangements, and a variety of similar compensation plans.

In response to the new income tax rules applicable to non-qualified deferred compensation arrangements enacted in 2004, we have developed a specialty in assisting companies in designing incentive pay and deferred compensation arrangements that either avoid the restrictions of the new law or that comply with those restrictions.  We have recently been retained by a high tech firm operating in New York and California to assist in the design of a non-qualified stock option program that will avoid the difficulties of the new law while at the same time providing meaningful equity incentives to the employees of the Company.  

We have also been retained to assist a large engineering firm in curing possible substantial defects in a so-called “rabbi trust” deferred compensation structure involving employer stock as the measurement of plan benefits.

Section 409A Notice