Media Mentions
2008
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 & Pensions
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 & Pensions
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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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 & Pensions, 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.
David R. Fuller, Andrew C. Liazos, Employee Benefits & Pensions, 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."
David R. Fuller, Andrew C. Liazos, Executive Compensation, Fringe Benefits, 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, 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, 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, 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 & Pensions, 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.
