NYSBA Perspective – Fall 2007 | Employee Benefits
Tags: Albany Law | Compensation arrangements | deferred compensation | Employee Benefits | health plans | Individual Employment | Lawyers | Legal Counsel | life insurance | Litigation Law | New York Law | retirement plans | stock based compensation | Syracuse Lawyers | tax qualified pensions | welfare plans
The ABC’s of Taxing Stock-Based Compensation
by Jonathan M. Cerrito
Employees, in particular executives, may be covered by a wide range of compensation arrangements. These compensation arrangements may involve, for example, tax-qualified pension and retirement plans, health and welfare plans, non-qualified deferred compensation, life insurance and stock-based compensation.
Stock-based compensation, a commonly used form of executive compensation, may include stock, restricted stock, stock options, stock appreciation rights and phantom stock. Employers may provide stock-based compensation to employees pursuant to a formal plan, an individual’s employment contract or both. In addition to employees, nonemployee service providers, such as outside directors, may also receive stock-based compensation.