Executive compensation: tandem option plans
Article Abstract:
Corporations are responding to the negative public opinion of executive pay programs by improving and innovating plan designs and strategies.Among the innovative approaches to executive compensation is the tandem option plan. The tandem option plan is a capital accumulation plan which combines two different options or awards. Phantom stock/stock option plan and restricted stock/stock option plan are two of the favorite variations of the tandem optionplan. This innovative executive compensation scheme grants immediate actual or phantom ownership without investment while rewarding the executive during stockprice increases.
Publication Name: Compensation & Benefits Management
Subject: Insurance
ISSN: 0748-061X
Year: 1992
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Executive compensation: ERISA compliance for nonqualified plans
Article Abstract:
Non-qualified deferred executive compensation plans must comply with the reporting and disclosure provisions of Title I of the ERISA. Deferred compensation plans must also file a plan description with the Dept of Labor every five years and submit a summary plan description to every covered executive. Moreover, there is a 30,000 dollar-a-year penalty for each noncomplying, nonqualified benefit plan. Thus, each company should examine whether their plans comply with the regulations.
Publication Name: Compensation & Benefits Management
Subject: Insurance
ISSN: 0748-061X
Year: 1992
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Health insurance for directors
Article Abstract:
When supplying board of directors with health insurance as part of their compensation packages, it must be remembered that they are not employees of the company. This distinction becomes important when figuring directors' gross income for tax reasons. For directors, the value of the company provided health care packages is to be added to their gross income, unless the insurance is part of an insured plan, according to the Internal Revenue Service.
Publication Name: Compensation & Benefits Management
Subject: Insurance
ISSN: 0748-061X
Year: 1992
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