Media Mentions
2011
“New ISS Guidance on Say on Pay Requires Ramping Up Now”
Corporate Board Member, December 23, 2011
Andrew Liazos urged companies to begin preparing now for peer review tests that Institutional Shareholder Services (ISS) will require for proxy documentation of executive pay standards, a preparation that should include “reaching out to the shareholders to understand their concerns." Liazos explained that, "When ISS comes up with peer groups, there may not be a correlation between those peer groups and the ones the [company’s] compensation committee comes up with. ...So you really don’t know how this is going to come out until you go through the numbers.”
Andrew C. Liazos, Employee Benefits
“Deadline for Puerto Rico Plan Spinoffs Approaching”
Tax Notes Today, December 6, 2011
Andrew Liazos cited “complexity and double tax issues” as reasons for sponsors of U.S. and Puerto Rico dual qualified retirement plans to spin the plans off tax-free before December 31. One key issue is the apparent IRS position that Puerto Rico plans do not qualify for group trust arrangements that Mr. Liazos said “provide economies of scale and unique investment opportunities” available to U.S. employees. He added that he is “hopeful there will be permanent relief for Puerto Rico-only plans or at least another extension” of the spin-off deadline.
Andrew C. Liazos, Employee Benefits
“Deferred Compensation Lets Executives Avoid 401(k) Saving Caps”
Bloomberg News, June 29, 2011
Andrew Liazos said that executives who choose to take distributions from nonqualified deferred compensation plans over a period of at least 10 years may save substantially if they move from a high-tax jurisdiction such as New York to a non-income tax state like Florida. He explained that, under federal law, the state where taxpayers earned deferred compensation cannot tax the income if the recipient moves and receives it in equal installments over 10 or more years.
Andrew C. Liazos, Employee Benefits
“Clawbacks Revisited”
CFO.com, May 12, 2011
Andrew Liazos, in this bylined article, wrote that the Dodd-Frank Act’s rules for public companies to implement compensation recovery (clawback) policies toward executive officers if financial results must be restated have “potential far-reaching impact” that “will require significant changes” for many companies. “It is reasonable to anticipate that these rules, in combination with other factors, may result in serious reconsideration of how incentive-compensation plans are designed,” Mr. Liazos wrote, adding that “sorting out … the potential accounting ramifications of the new rules will not be simple or quick.”
Andrew C. Liazos, Employee Benefits
“Say-on-Pay Rules Include Delay for Small Companies”
Compliance Week, March 1, 2011
Andrew Liazos recommended that companies not pursuing business combinations should consider “on an issuer by issuer basis” disclosing executive golden parachute compensation plans in their annual proxies because SEC rules offer an exception to shareholder votes on such plans if a transaction occurs later. “Companies need to consider how much more disclosure they would have to provide to satisfy [the SEC rules] and whether it could tilt their [say-on-pay] vote in a negative way.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Shareholders Kick Off Annual Meeting Season with ‘No’ Votes”
Boardmember.com, February 17, 2011
Andrew Liazos said of shareholder no votes on executive pay packages at several companies that more such rejections are “not going to be surprising…due to general dissatisfaction with corporate financial results as opposed to problems with specific [compensation] committee actions.” He believes more companies want annual rather than triennial votes “because they can see from early voting results that the shareholders really want to have an annual say-on-pay vote.” For that reason Mr. Liazos sees companies putting “much more focus on persuasion versus compliance when it comes to the proxy disclosure” because “the primary focus has securely shifted to favorable say-on-pay votes.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
“Law360 Employment Editorial Advisory Board”
Law360, February 2, 2011
Andrew Liazos has been named to the board of leading employment law professionals who will provide editorial guidance to Law360 during 2011. Mr. Liazos, head of the Firm’s executive compensation group and the Boston office employee benefits practice, regularly advises Fortune 500 companies and other public and private employers on compensation and benefit issues.
Andrew C. Liazos, Employee Benefits
“Final Say-on-Pay Rules Include Delay for Small Companies”
Compliance Week, February 1, 2011
Andrew Liazos suggested that companies should consider “on an issuer by issuer basis” whether to make disclosure in their annual proxies about golden parachute executive compensation arrangements in certain transactions, in order to take advantage of an exception in new shareholder say-on-pay (SOP) rules if the transaction occurs later. “Companies need to consider how much more disclosure they would have to provide to satisfy [the new rules] and whether it could tilt their SPO vote in a negative way,” he said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
“The Latest SOP Frequency Update”
Compliance Week, January 27, 2011
Andrew Liazos noted that because smaller companies are not required by the SEC to hold shareholder “say-on-pay” (SOP) votes until 2013, some of these companies will likely not recommend the triennial votes that larger companies now favor. He added that the bulk of any company’s efforts should be on “putting their best foot forward on pay-for-performance and making sure that information is accessible to shareholders and easy to understand.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
2010
“Top 10 Things You Need to Know about Dodd-Frank”
Worth, December 8, 2010
Andrew Liazos said that the Dodd-Frank Act’s provision giving shareholders a vote on executive compensation is a warning to corporate boards. “The SEC sees compensation as an indicator of the relationship between the board and the CEO – does it have the backbone to stand up to him,” Mr. Liazos explained, adding that board members on compensation committees should especially be knowledgeable about company performance and peer compensation policies.
Andrew C. Liazos, Employee Benefits
“Grossing Up Golden Parachute Payments”
M&A Tax Report, November 2010
Andrew Liazos and Daniel Senecoff, whose previous study had assessed issues related to the tax gross-up of “golden parachute” payments in merger and acquisition transactions, are said in this article to have “suggested interesting and important thoughts about some more sophisticated approaches” to making such arrangements work. For that reason, the article states, the study by Mr. Liazos and Mr. Senecoff “becomes all that much more required reading” for companies that would otherwise decry the use of gross-ups.
Andrew C. Liazos, Daniel Senecoff, Employee Benefits
"Price, regulatory issues can lead to benefit headaches"
Boston Business Journal, October 15, 2010
Andrew Liazos spoke about steps employers should and should not take to reduce employee benefit costs. He warned, "If any consultant tells you that they'll manage your 401(k) fees for free and that they'll take their fees from the plan, that should be a red flag," adding that employers should ask any benefits consultant about which firms it partners with and about employee and client turnover. "What that gets to is stability," Mr. Liazos said. "[T]he loss of clients and loss of people working on cases leads to instability and that is something to give serious thought to. I don't think when selecting vendors you can overestimate the importance of understanding the relationships they have with their existing clients." Mr. Liazos also said employers should specifically document services and fees involved in using a consultant.
Andrew C. Liazos, Employee Benefits
Andrew Liazos was quoted by Pensions & Investments (August 9) regarding greater restrictions on and oversight of executive pay contained in the Dodd-Frank financial services reform law. Mr. Liazos said the law has given shareholders “new tools in trying to deal with executive compensation,” adding that because Congress “failed to deal with it” in recent years by restricting tax deductions on compensation, it now has “gone through a different way to solve the problem by giving shareholders a greater voice.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
David Cifrino and Andrew Liazos were interviewed by Corporate Board Member on March 12 concerning new Securities & Exchange Commission (SEC) proxy rules that require disclosure of public company compensation programs that create risks likely to have a material financial impact. Mr. Cifrino noted that “if a company doesn’t say that it has any such risks … the SEC has said it will ask the company to explain what process was used to make that determination,” and Mr. Liazos added that “a significant amount of time and money will need to be expended in many cases in order to be able to demonstrate that a company’s compensation programs do not encourage excessive risk taking.” Both lawyers said the new rules will have a major impact on compensation consultants and board compensation committees.
David A. Cifrino PC, Andrew C. Liazos, Corporate Responsibility and Governance, Employee Benefits, Executive Compensation
2009
Andrew Liazos was quoted on December 15 by CFO.com in an article about how the coming of the Bush tax cuts, and a likely higher tax rate as a result, could lead to a decrease in executives’ use of deferred compensation arrangements. "It's a bit of a twist,” Mr. Liazos said. “[P]eople usually try to defer compensation as long as possible, but now you see many evaluating how to accelerate it as much as possible because of the fear the tax situation will become much worse." He added that some companies are even planning to do away with their deferred compensation plans entirely, in part for tax reasons.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos discussed issues relating to deferred executive compensation on December 15 for Forbes.com. “There's no question some executives are still deferring [pay], particularly when there is a long time horizon and their employer is stable,” Mr. Liazos said, “but many executives are deciding to take dollars now due to uncertain tax rates, economic conditions and personal cash flow.” One consideration is that the top tax rate on ordinary income may go from 35 percent today to at least 39.6 percent for 2011 as the Bush tax cuts expire. For that reason, Mr. Liazos advised executives that “if you have a large amount of dollars at stake and your time horizon is short, you're better off taking the taxable income in 2010, because otherwise you're looking at least a 5 percent haircut in terms of tax liability in 2011.”
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos spoke with Boardmember.com on October 7, warning that corporate board members need to prepare now for pending legislation in the House of Representatives that would give shareholders a vote on pay for top executives at all U.S. public companies. Mr. Liazos suggested that directors find out how management is preparing for this change by asking what the strategy is for handling shareholder communication and disclosure issues. Also, he added, board members should make sure their companies are aligning pay with performance, and jettisoning any poor pay practices that do not emphasize such an alignment. A key risk management consideration is that executives should be compensated for enhancing long-term shareholder value.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted by Dow Jones Newswires in a July 27 story about recent U.S. Tax Code changes that prohibit deferral of taxes on compensation paid to managers of offshore hedge funds. Mr. Liazos said the new rules will pose significant compensation issues, especially for funds based in tax havens. As he noted, when such funds and their managers use deferred compensation strategies, “They control when they pay the tax. That means there’s a huge amount of compensation that isn’t being taxed for periods of time.” He added that issues to be addressed in these instances include whether the fund is “tax indifferent” under IRS rules, and whether the specific compensation is subject to the Section 457A tax rule.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in Corporate Board Member on July 23 regarding impending legislation that would require public companies with annual meetings occurring on or after December 15, 2009 to give their shareholders a say on executive compensation. Mr. Liazos noted that directors should determine how management is preparing for this change. He stated that directors should, “Ask what the shareholder communication strategy is—who handles shareholder inquiries and the fair disclosure issues that may arise? Also, make sure your company is aligning pay with performance. If your company participates in poor pay practices, now is the time to jettison them….Finally, consider risk management. Are executives compensated for long-term shareholder value?”
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in a Law360 story on May 20 regarding a Securities and Exchange Commission proposal to give shareholders the right to nominate their own corporate board candidates. Noting that similar proposals were twice made during the Bush Administration but did not get past Republican opposition, Mr. Liazos stated that “the difference now is you have a Democratic administration and you have three Democratic appointees and two Republican appointees.”
Andrew C. Liazos, Employee Benefits
Andrew Liazos was cited on May 12 in BNA Pensions & Benefits Daily as he spoke at an ABA Section on Taxation panel concerning IRS rules governing Section 457A that applies to compensation that is deferred under a nonqualified deferred compensation plan of a nonqualified entity. Mr. Liazos noted that Treasury Department interpretation is uncertain regarding a certain unusual "side pocket" arrangement in hedge funds. This is a single asset investment that Section 457A carves out and treats as an exception.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted on March 2 in The National Law Journal regarding public corporations seeking guidance from lawyers regarding the restructuring of executive bonuses, salaries and employee stock-option plans. Mr. Liazos commented, "Companies now feel compelled to more thoroughly justify and explain their compensation structure in proxy statements, much as they felt obliged to explain their stock-options backdating problems, or lack of problems, in SEC filings when that was a hot issue." He continued by noting that companies are also, "coming around to the view that clawbacks are not unreasonable." Mr. Liazos said, "Clawbacks date back to the Sarbanes-Oxley Act of 2002, but those provisions only applied to the chief executive officer or chief financial officer if he or she engaged in misconduct related to a financial statement."
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the February 2 edition of Law360 about how companies are starting to reflect on their compensation practices and prepare for increased public scrutiny. Mr. Liazos said public companies are also increasingly thinking about how compensation decisions will be perceived by their shareholders. "For companies that have had a difficult time, I think they're going to have to work hard to make the case that they have a real retention need, or that it makes sense to pay even though they didn't meet the pre-established performance goals," Mr. Liazos said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
2008
Andrew Liazos was quoted on October 22 in Law360 regarding Wall Street's volatility. Mr. Liazos noted that the credit crunch may force companies with liquidity problems to consider alternative compensation strategies. "We are already seeing cash-strapped companies evaluate how to shift from cash compensation to equity based compensation," Mr. Liazos said. "When there's a need to retain key performers and cash is scare, equity may become a particularly attractive retention tool."
Andrew C. Liazos, Employee Benefits, Markets Restructuring
Andrew Liazos was quoted in the February 25 issue of Financial Week about how a tax ruling by the IRS could bring an end to the controversial practice of granting golden parachutes to top executives who are pushed out amid corporate failures. "The bad news is that they didn't listen to our arguments about the ruling being misguided," said Mr. Liazos. "The good news is that the position will be applied prospectively, meaning companies will have time to modify their plans."
Andrew C. Liazos, Employee Benefits
2007
Andrew Liazos was quoted on September 10 in Financial Week regarding the Internal Revenue Service rules governing deferred compensation. Tax lawyers have been pressuring the IRS and the Treasury Department to extend the year-end deadline from bringing documents into compliance with the rules. The IRS extended until December 2008, but the extension applies only to the documenting of compliance under 409A, not to the effective date of the new regulations, which begin January 1, 2008. "The rules of the road are still going to change at the end of this year, and this relief only has to do with documenting compliance," commented Mr. Liazos. "People might get put to sleep on this extension, and that would be a big mistake," he said.
Andrew C. Liazos, Employee Benefits
Andrew Liazos was quoted by Bloomberg on January 16 in regard to the Senate Finance Committee's possible proposal to limit $1 million on deferred compensation.
Andrew C. Liazos, Executive Compensation, Non-Qualified Deferred Compensation
2006
Andrew Liazos was quoted in the October issue of CFO on the impact of new Securities and Exchange Commission executive compensation disclosure rules. Speaking to the work required to complete the compensation discussion and analysis that must now accompany 10-K filings, Mr. Liazos commented that "the SEC really doesn't want boilerplate in these documents." He also noted that some companies are renegotiating compensation packages as a result of the increased disclosure.
Andrew C. Liazos, Executive Compensation
Andew Liazos was quoted in the September 12 issue of The National Law Journal, about a sweeping tax code 409A—regulating many deferred-compensation plans favored by private companies, including stock options. Both tax and corporate attorneys feel that the new law is strewn with pitfalls and complexities that hinder corporate deal making and expose executives to penalties. He commented on the problems that this code has had on buyer and how it could have been avoided if Congress would have given "the regulators an opportunity go update the regulations as opposed to having Congress come in and change the rules of the game completely."
Andrew C. Liazos, Corporate, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the February 14 issue of Forbes magazine in an article about the U.S. Securities and Exchange Commission's pay disclosure proposals. Attorneys say more rules provide more opportunities for companies to mess up, and more information means more ammunition for lawsuits. "There's going to be so much information to go after. I suspect there will be a fair amount of activity," Mr. Liazos said.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted on Forbes.com on February 14 regarding the SEC's pay disclosure proposals. Mr. Liazos commented that more being information provided could mean more ammunition for lawsuits.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos commented in the January issue of CFO Magazine that it is uncertain how common the backdating of options has been that SOX now requires directors and officers to report option grants to the SEC within two business days.
Andrew C. Liazos, Executive Compensation
2005
Andrew Liazos was quoted in the May 31 issue of Compliance Week in article about Marriott International recently informing the Securities and Exchange Commission that it is permanently suspending the payment of premiums on the life insurance policies of its CEO for fear that such payments might violate Section 402 of the Sarbanes-Oxley Act. According to Mr. Liazos, in the absence of SEC guidance about whether Section 402 prohibits split-value life insurance policies—and whether pre-SOX policies are permissible under a grandfather provision—many companies have discontinued split-value life insurance policies altogether.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was mentioned in the March 2 issue of the Wall Street Journal regarding IRS audits of executive compensation at large U.S. public companies. Mr. Liazos commented that recently reported instances of tax noncompliance at these companies have raised issues of corporate governance which have gained the attention of the Chairmen of the Securities & Exchange Commission and the Public Company Accounting Oversight Board.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the February issue of CFO Magazine in regard to the ramifications of Sarbanes-Oxley and its impact on executives who have recently terminated employment with a public company following a restatement of its financial statements. Mr. Liazos commented that the Sarbanes-Oxley Act provides for the recapture of bonuses paid based on erroneous financial information if there is a restatement that results from misconduct regardless of the provisions in the executive's employment agreement.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the January 2005 issue of Workforce Management in regard to the redesigned, stricter audits by the IRS of employee pension plans and executive compensation programs. The article reiterates recommendations by the IRS for companies to perform internal reviews of their executive compensation programs and pension plans. Mr. Liazos commented on the findings of the IRS audits and says poor oversight is the cause for many of the problems with executive compensation plans.
Andrew C. Liazos, Employee Benefits, Executive Compensation
2004
Andrew Liazos was quoted in the December 6 issue of Tax Notes in regard to whether the American Jobs Creation Act of 2004 is too broad and may go too far. "Instead what we got is a statute that puts all sorts of artificial limitations on what can be done, and in addition to somewhat targeting what was perceived to be abusive, such as haircut provisions and the like, it raises questions about compensation packages that were always considered appropriate and well within the meaning of existing tax rules," commented Mr. Liazos.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Tax
Andrew Liazos was quoted in the November 30 issue of Workforce Management in regard to the IRS' intense corporate audit initiatives which were instituted a year ago. The article emphasizes the need for companies to perform comprehensive compliance reviews. "If they're spending money and hiring people and finding errors, they're serious," commented Mr. Liazos regarding the IRS' ever expanding staff and resources.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted in the November 29 issue of Fortune in regard to year-end tax planning and the recent tax legislation impacting nonqualified deferred compensation plans. Mr. Liazos recommended that executives take the time now to understand how this legislation will impact their rights under these plans in connection with making year-end deferral elections.
Andrew C. Liazos, Executive Compensation, Tax
Andrew Liazos was quoted in the October 12 issue of the Washington Post in regard to a corporate tax bill passed by the U.S. Congress that will impact executive compensation. Mr. Liazos commented that executive compensation is under scrutiny in Congress, as well as the SEC, and that this tax bill would place new restrictions on executives' ability both to defer and to accelerate the payment of retirement benefits on a tax-advantaged basis.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Andrew Liazos was quoted in the September 5 issue of the Chicago Tribune in regard to what is considered a legitimate business expense and the appropriate use of company funds for executive compensation from a shareholder's perspective. "More rules and regulations in reaction to corporate scandals will not ensure the type of conduct that investors may expect or want," commented Mr. Liazos.
Andrew C. Liazos, Executive Compensation
Andrew Liazos and David Fuller were quoted in the September 2004 issue of Financial Executive International in regard to the IRS beginning to address "significant non-compliance by public companies with the tax law requirements applicable to executive compensation." "The agency has been developing audit guidelines for its examiners, but has not released a timetable for publication," commented Mr. Liazos. "We'd all love to see IRS guidelines, but they don't have any requirement to release them to the public, though they would release them to the agents for audits," Mr. Fuller said.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Andrew Liazos was quoted in the July issue of CFO magazine in an article reporting on IRS audit activity following the IRS Restructuring and Reform Act of 1998. The article suggested that companies are pushing harder not to pay taxes because they see there's no enforcement. Mr. Liazos cautioned against minimizing the risks posed by IRS audits, noting the risks for CFOs under Sarbanes-Oxley in pushing too hard and the IRS' expressed interest in "sharing audit information with the SEC for purposes of enforcement action."
Andrew C. Liazos, Executive Compensation
2003
David Fuller and Andrew Liazos were quoted on the IRS executive compensation compliance initiative in the Los Angeles Times on December 30. Mr. Fuller noted that “the audits are active [and that] the IRS is asking corporate tax directors to give them the personal returns of their executives, officers and directors.” Mr. Liazos advised that companies take the time now to evaluate their level of audit readiness. Mr. Liazos, who was also quoted on this topic in the January issue of CFO Magazine, further noted that now is "the time to inventory exactly what you have and identify what your exposure is."
Andrew C. Liazos, Executive Compensation, Tax
Andrew Liazos was quoted in the November issue of CFO magazine in the article "The End of Split-Dollar Life?" Mr. Liazos commented that companies and executives that have existing split-dollar arrangements with significant cash value equity accumulation have until December 31, 2003 to restructure the plans or terminate them without paying a tax on the equity.
Andrew C. Liazos, Executive Compensation, Insurance, Split-Dollar Life Insurance
Andrew Liazos was quoted in the May 23 issue of the Boston Business Journal regarding the effect of Sarbanes-Oxley for split-dollar insurance. "Sarbanes Oxley doesn't have that many direct impacts on benefits - the blackout and the loan impact - but the broader impact is to what degree companies will look at governance procedures for their benefits plans," commented Mr. Liazos.
Andrew C. Liazos, Corporate Responsibility and Governance, Executive Compensation
Andrew Liazos was quoted in the May issue of Board Alert in regard to the increased salaries of committee chairs, non-executive chairman and presiding directors, who are doing more work than ever before. The bigger paychecks, Mr. Liazos commented, marks "a shift in thinking. Directors are saying, 'If you're putting all this additional responsibility on me, you'd better pay me well and indemnify me.'"
Andrew C. Liazos, Corporate Responsibility and Governance, Executive Compensation
Andrew Liazos was quoted in the March issue of Board Alert in an article addressing the future of split-dollar insurance. Mr. Liazos outlined options that exist as corporations wait for clarification from the SEC regarding split-dollar insurance. An employer can require the executive to take up the slack and pay the premiums or the company can give a bonus (with compensation tax implications) to the executive to pay the premiums. "It buys you a year without jeopardizing the policy," Mr. Liazos commented.
Andrew C. Liazos, Executive Compensation, Split-Dollar Life Insurance
2002
Andrew Liazos was quoted in the November 11 issue of Fortune magazine in regard to "sweetheart loans" covered under the Sarbanes-Oxley Act. Many public companies have ceased making premium payments pursuant to "split dollar" life insurance arrangements, which may be viewed as prohibited loans under the Act. Mr. Liazos pointed out that careful planning is required to safeguard policy values if a public company discontinues split-dollar premium payments.
Andrew C. Liazos, Corporate Responsibility and Governance, Split-Dollar Life Insurance
Andrew Liazos was quoted in the September issue of CFO Magazine regarding recent proposed changes to the taxation of split-dollar life insurance. Mr. Liazos commented that the approach taken by the proposed regulations, if adopted in its current form, will increase the tax cost of split-dollar in many cases for new arrangements. He also noted that arrangements established before final regulations are issued will continue to be covered by favorable transition rules under prior IRS guidance.
Andrew C. Liazos, Executive Compensation
Andrew Liazos was quoted in the May 23 issue of Wall Street Journal regarding an IRS ruling that makes dividing stock options in a divorce easier. It was unclear prior to the new ruling whether the IRS would assess income tax upon the transfer of stock options in a divorce settlement. The new ruling states each spouse will assume only the income tax burden for their own share of options, and only upon exercise of the options. Mr. Liazos commented that payroll taxes could remain the employee's burden after transferring the options, and that the IRS is seeking comments on such a proposal.
Andrew C. Liazos, Executive Compensation
Andrew Liazos was noted in the April issue of CFO Magazine in an article addressing how recent IRS guidance (Notice 2002-8) impacts equity split dollar life insurance. Executives may terminate or restructure equity split dollar in many cases before January 1, 2004, and acquire outright ownership of a whole life insurance policy without being subject to immediate income tax. Mr. Liazos commented that IRS regulations are likely to reverse this result for the termination of an equity split-dollar agreement after 2003 that is not treated as a loan.
Andrew C. Liazos, Executive Compensation
Andrew Liazos was noted in the March issue of CFO Magazine in an article addressing how recent IRS guidance (Notice 2002-8) impacts equity split dollar life insurance. Executives may terminate or restructure equity split dollar life insurance in many cases before January 1, 2004, and acquire outright ownership of a whole life insurance policy without being subject to immediate income tax. Mr. Liazos commented that IRS regulations are likely to reverse this result for the termination of an equity split-dollar agreement after 2003 that is not treated as a loan.
Andrew C. Liazos, Executive Compensation
Andrew Liazos was quoted in the February 21 issue of Private Equity Week in an article addressing recent changes made by the IRS to the tax code dealing with golden parachute payouts. Mr. Liazos commented, "These regulations make it clear that if you have vested stock options and are otherwise not highly compensated, you won’t be subject to the excise tax unless you own more than 1% of the company."
Andrew C. Liazos, Executive Compensation, Private Equity
Andrew Liazos was quoted in the January 28 issue of Business Week. Mr. Liazos commented on planning opportunities for split-dollar life insurance under IRS guidance issued earlier this month. He noted that the guidance "gives us back the breathing room that the IRS took away last year," and allows "everyone time to figure out their best course."
Andrew C. Liazos, Executive Compensation
Andrew Liazos was quoted in the January 7 issue of Fortune magazine in an article addressing investment by Section 401(k) plans in company stock and proposed legislation that would limit employer flexibility. Proposed legislation includes reduced tax breaks for companies that match 401(k) contributions with employer stock and limitations on the periods that employees can hold matching stock in 401(k) accounts. Mr. Liazos commented that companies may reduce or cease making matching contributions if Congress enacts these restrictions.
Andrew C. Liazos, Executive Compensation
2001
Andrew Liazos commented in the November 18 issue of the Boston Globe on the tax law signed by President Bush. The law increases benefits allowed under employee retirement plans and IRAs, but several states, including California and Massachusetts, have not adopted the federal changes. Mr. Liazos commented that providing higher benefits as allowed under federal law may result in a loss of tax favored treatment for retirement benefits in these states.
Andrew C. Liazos, Employee Benefits, Executive Compensation
Andrew Liazos was quoted as an executive compensation expert regarding the SEC and stock option rescissions in the April 2001 issue of CFO Magazine.
Andrew C. Liazos, Executive Compensation
Andrew Liazos was quoted in the February 19 issue of Business Week on Serp Swaps.
