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The 2008 credit crisis triggered complex legislative and regulatory responses that have, to date, been only partially implemented. Our new President-Elect Barack Obama and the Democratic Congress, with significantly increased Democratic margins, have strong views about additional executive compensation reform proposals. Our lead presenter, former Congressman Michael G. Oxley (co-sponsor of the Sarbanes-Oxley Act), will address how the 2008 credit crisis and the recent elections are likely to impact executive compensation now and in 2009. Then, a panel comprised of U.S. Treasury and SEC officials and experienced tax, benefits and securities attorneys will discuss which executive compensation strategies are most likely to come under attack and bear a heavier tax burden, and which executive compensation strategies are more likely to withstand change while providing the most effective (and defensible) economic results for executives. Objectives: The principal objectives of this 60-90 minute presentation are to provide attendees with perspective on how recent legislative changes and the recent elections are likely to affect the regulation and taxation of business executive compensation. Attendees should be able to discern the following: 1. The circumstances under which federal income and employment tax rates are likely to rise, due to new legislation and the expiration of changes enacted during the Bush Administration; 2. Whether anything can be done to minimize (or at least, manage) the burdens placed on existing compensatory arrangements, based on the current tax and other regulatory rules (including the Section 409A rules, the parachute payment rules, the current limits placed on compensation paid to senior executives, and the current public company compensation disclosure rules); 3. What further regulatory and legislative changes are likely in the executive compensation arena, including those relating to both tax policy and public disclosure; 4. Whether distinctions between public company executive compensation practices and private company executive compensation practices are likely; 5. What executive compensation practices are less vulnerable to direct and indirect federal regulation, either due to circumstances or due to the historical role played by states in the regulation of “corporate” activity; 6. Whether the joint venture/start-up model, which in recent years has been used to maximize executive compensation (through, e.g., the use of start-up stock and carried interests) or other models are likely to be curtailed under an Obama Administration; 7. What (if any) executive compensation practices are likely to be viewed as “safe” and capable of providing predictable outcomes.
Recorded on December 9, 2008, this audio event is available on CD for purchase.
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