Oct-08

Code Section 162(m) - An Overview of Performance-Based Compensation

Code Section 162(m) limits the amount of annual compensation that may be deducted by a public company for each of its top four executives to $1 million.  Certain types of compensation are not subject to the limit, including compensation that is performance-based within the meaning of IRS regulations.  The following summarizes the requirements for the performance-based exception.

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