Quiz
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
S
Section 162(m)

Section of the Internal Revenue Code that restricts the corporate tax deduction for compensation to $1 million per year for each senior executive. The senior executives covered by the law are the CEO, CFO, and the three highest-paid executives. In certain circumstances, stock options and restricted stock/RSUs are not included in the compensation calculation when (1) they are performance-based and have been approved by shareholders or (2) the grant was made on or before November 2, 2017, and has not been materially modified. Standard time-vested stock options with an exercise price equal to FMV are considered performance-based, while restricted stock would need performance-vesting features. For more details, including the elimination in 2018 of the performance-based compensation exemption, see the related FAQ.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2018 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information