Schiff Hardin attorneys work on executive deferred compensation and supplemental retirement arrangements, many of which are related to stock of the employer and range from relatively simple stock option plans to more complicated phantom stock plans and so-called "market basket" arrangements that contain a large variety of compensation vehicles, such as incentive stock options, stock appreciation rights, nonstatutory stock options, stock awards, and restricted stock arrangements.
We are working closely with clients in bringing these plans into compliance with the substantial changes under the new Section 409A of the Internal Revenue Code, as enacted by the American Jobs Creation Act of 2004 (AJCA).
Those arrangements that do not relate to stock of the employer include bonus and incentive performance plans and deferred compensation arrangements. We also have designed employment agreements, consulting agreements, change in control agreements and private pension arrangements for highly compensated executives, including those of governmental authorities, to supplement pension benefits that are limited by various statutory or pension plan provisions. We have extensive experience in the funding of such arrangements, including "rabbi" trusts and "secular" trusts. We also handle golden parachute issues and the $1 million dollar limitation on deductibility of annual compensation under Code Section 162(m).