Everything About Executive Compensation

TaxTax ComplianceExecutive CompensationComplianceTax PlanningPayrollLegalPartnerships

Section 162(m) and the $1 Million Cap: Why Your Covered Employee List Is About to Get a Lot Longer in 2026

Section 162(m) caps a public company's federal deduction for executive pay at $1 million per person. Starting in 2026, OBBBA aggregates compensation across the IRC § 414 controlled group — including partnerships and LLCs — and the ARPA expansion adds the five highest-paid employees to the covered list in 2027.

Executive CompensationEquity InstrumentsTax PlanningFamily BusinessS CorporationComplianceSmall Business

Phantom Stock and SARs: How Private Companies Reward Key Employees With Synthetic Equity Without Diluting the Cap Table

A practical guide to phantom stock and SARs for private companies — how the plans work, why Section 409A's 20% penalty is the rule that breaks most informal arrangements, how ASC 718 liability accounting affects EBITDA, and when synthetic equity beats options, RSUs, or an ESOP.

Tax PlanningRetirement PlansEmployee BenefitsComplianceExecutive CompensationPersonal FinanceTax

Nonqualified Deferred Compensation: Section 409A, Rabbi Trusts, and the 20% Penalty Executives Need to Avoid

Section 409A lets companies defer executive pay above 401(k) limits, but a single misstep triggers immediate taxation on every vested dollar plus a 20% federal penalty and premium interest. Here is how NQDC plans, rabbi trusts, and the six permissible distribution triggers actually work.