Personal Tax Planning: Current Issues in Compensation

Abstract

This article discusses the main categories of compensation programs as distinguished for tax purposes and describes some of the potential tax implications that may be associated with certain changes made to these compensation programs, as well as some approaches to mitigate such tax impacts. It also reviews proposed legislative changes in the area of stock options and suggests what companies should be considering in preparation for these changes. Further, in the context of the COVID-19 pandemic, this article discusses key aspects of "working from anywhere" in relation to certain compensation programs, and the potential and expected impact of environmental, social, and governance corporate imperatives in designing and determining executive compensation.