When negotiating an executive employment agreement, you have to consider not only the compensation but also the tax consequences and issues that may arise because of when or how you are compensated. To fully understand and avoid any potential pitfalls, you should ensure your compensation agreement complies with the requirements of section 409A of the Internal Revenue Code, a law that addresses taxation and regulation of deferred compensation arrangements.
As the COVID-19 coronavirus spreads, so do workers' fears about their jobs, compensation, and health insurance coverage. For many employees, losing a job also places their stock options in jeopardy. In our continuing series of FAQs, we talk about stock options - what you need to know, how and when to exercise them, and how you can approach an employer to preserve your rights.