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| July 2004 | The
Monthly Newspaper of the NYSSCPA |
Vol.
7, No.10 |
Buzz on Executive Compensation Reform
By Kate Prouty
For two years or so now, there’s been a lot of talk of executive compensation reforms, and also a lot of floundering about what should be allowed and what shouldn’t,” reported Michael Doran, deputy benefits tax counsel for the U.S. Department of Treasury, at the Foundation for Accounting Education’s May 18 Employee Benefits Conference. “The Senate and the House of Representatives have been ping-ponging the issue.”
Doran added that revising executive compensation policy has been “essentially off the radar” since Congress took a hard look at nonqualified deferred compensation plans in 1978.
Martin Nissenbaum, a partner and national director of personal income tax and retirement planning at Ernst & Young, expanded the discussion with an update on recent and proposed legislation. The proposed National Employee Savings and Trust Equity Guarantee Act (NESTEG), would, among other things, repeal Treasury guidance regarding nonqualified deferred compensation plans—Section 132 of Revenue Act of 1978—which Doran referred to as Congress’ last major reform in executive compensation.
Doran expects legislative action in this area within the next year or two.
The NYSSCPA’s Employee Benefits Committee, chaired by Barry C. Picker, sponsored the conference. Leon J. Gutmann and George Mandel cochaired the event.
