Insights: Publications Guest Column: Tax Cuts and Jobs Act Makes Changes to Executive Compensation

The Tax Cuts and Jobs Act (the “Act”) instituted major changes to section 162(m) in connection with reducing the corporate tax rate from 35% to 21%. These changes include eliminating the performance-based compensation and commission exceptions to the cap and expanding the compensation, executives, and companies subject to section 162(m)’s limitations. Paying compensation to Covered Employees over $1 million is expected to become more expensive. The Act’s most significant changes to section 162(m) are discussed in this article.

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