IRS's claim of 'excess parachute payments' against Columbia/HCA Healthcare Corp. appears to rely on an interpretation that goes against its own regulations

Article Abstract:

The IRS argues in a pending case that $443 mil of the $543 mil gain claimed by the Columbia/HCA Healthcare Corp for stock options in 1992 qualified as excess parachute payments under IRC 280G or unreasonable compensation under IRC 162A and thus were not deductible. Should the IRS win this dispute, companies may need to re-examine the use of stock options to compensate employees. The IRS' second argument for denying the deduction is that it was unreasonable pay for executives.

Cases, Acquisitions and mergers, Tax deductions, COL, Employee stock options, HCA Inc., Golden parachutes

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The SEC, recognizing that many transactions between a public company and its insiders may not affect the markets, has revised the rules for Sec. 16

Article Abstract:

The SEC has with an amendment of Rule 16b-3, taking effect on Aug 15, 1996, simplified the liability for insider-only securities transactions as well as relaxing the reporting requirements for such transactions if a few relatively simple conditions are satisfied. There will now be four categories of insider only transactions with easily satisfied conditions. The new rules also introduce group reporting and make other simplifications.

United States. Securities and Exchange Commission

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SEC acts on selective disclosures; the agency announced its first Regulation FD enforcement actions, plus a new rule on financial data

Article Abstract:

The first Regulation FD enforcement actions of the SEC are discussed, along with the names of the companies targeted for such enforcement and exactly what they were found guilty of. The rules regulate insider trading and define the practice

Legal issues & crime, Government regulation (cont), Government regulation, Legal/Government Regulation

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