November 13, 2017
The House Ways and Means Committee scrapped plans Thursday that would have made sweeping changes to the tax treatment of deferred compensation in the new GOP tax reform plan. The new bill is scheduled to go to a vote on the House floor this week. David Teigman comments in Agenda on November 13:
According to David Teigman, partner at Cadwalader, Wickersham & Taft, the rationale for the change by the House Joint Committee on Taxation raises some questions.
“The JCT states that the shift to stock options from cash payment has resulted in ‘perverse’ consequences, with executives focusing on quarterly results rather than on the long-term success of the company. While this may be a concern, it is hard to see how shifting to more cash compensation would incentivize executives to focus on long-term company success.”
Patrick Quinn and Ruth Merisier discuss the legal profession, working at Cadwalader, and more.