As a consequence of the economic distress arising from the COVID-19 pandemic, policymakers are taking exceptional measures with respect to public health, public finance, monetary policy, corporate governance, and day-to-day business operations. Among the latter are issues regarding executive compensation. This column will highlight the aspects of executive compensation that have been impacted by two provisions of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act). The first is the provision imposing limits on the compensation paid to certain higher-paid executives and the second is the provision authorizing a coronavirus-related distribution to be made to eligible retirement plan participants.
Author: Paul J. Schneider, JD, LLM, is senior counsel to Paisner~Litvin, LLP, Bala Cynwyd, Pennsylvania, where he has advised clients on taxation and employee benefit matters for more than 30 years. He is a charter fellow of the American College of Employee Benefits Counsel and has served as chairman of the Important Developments Subcommittee of the American Bar Association Tax Section’s Employee Benefits Committee. Mr. Schneider is also a member of the board of editors of the Journal of Taxation.
Mr. Schneider is a graduate of Lehigh University, Columbia University School of Law (JD), New York University (LLM in Taxation), and LaSalle University (MBA). Mr. Schneider frequently writes articles and lectures on tax and employee benefits-related topics, and is the former coeditor of ERISA: A Comprehensive Guide, 4th Edition (Aspen, 2011).
FSP members: Click here to access this article for free (member log-in required).