Revisiting Golden Parachutes

Recently finalized Treasury regulations have made numerous changes to the rules governing payments by a corporation to an executive contingent on a change in the corporation's ownership or control. In this article, by Kirkland partners Jack S. Levin and Donald E. Rocap, the authors give an in-depth explanation of the tax treatment of golden parachute payments, analyze how the newly issued regulations alter the executive compensation landscape, and provide numerous examples to illustrate the rules' application.