MONTH-IN-BRIEF (Dec 2020)
IRS Issues Final Section 162(m) Regulations
By Michael Albano, Mary Alcock, Caroline Hayday and Julia Rozenblit, Cleary Gottlieb
On December 18, 2020, the Internal Revenue Service issued final regulations under Section 162(m) of the Internal Revenue Code, as amended by the 2017 Tax Cuts and Jobs Act (TCJA). Section 162(m) limits the deductibility of compensation paid in any year to certain public company executives to $1 million. The final regulations provide further guidance on the TCJA’s amendments to Section 162(m) and are generally consistent with the IRS’ 2019 proposed regulations. The final regulations will apply to tax years beginning on or after December 30, 2020, with special applicability dates for specified provisions.
Key changes from the proposed regulations and other clarifications are discussed in our December 30, 2020 alert memorandum.
Nasdaq Proposes New Board Diversity Listing Rules
By Mark L. Johnson, Bella Zaslavsky, Andrew H. Galtieri, K&L Gates LLP