We design and implement executive compensation programs. This entails advising on the optimal forms of compensation, taxable and non-taxable benefits, tax-effective retirement plans, stock option programs, and insurance and disability plans.
We have written extensively on stock options and developed rules of thumb for exercising options, and can assist with your tax-reporting and valuation issues.
We have also designed and implemented carried interest arrangements, where executives participate directly in certain businesses. Using these plans, executives can obtain capital gains tax treatment (taxed at half rates) instead of regular salary or bonuses. We often include family trusts within these plans to maximize the benefits of income splitting. Sometimes the $500,000 capital gains exemption can be used to obtain tax-free capital gains.