Determining Reasonable Compensation for Owner Employees

Overview

This session will expand on methodologies to employ when owner-employee compensation is at issue. The session will focus on determinations of reasonable replacement compensation for individuals who both provide services to a closely held business or professional practice and also have an ownership stake in the enterprise. Executive Compensation in the form of options and restricted stock will also be covered in the context of marital dissolution proceedings. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

Familiarity with owner-employee compensation issues.

Objectives

After attending this presentation, you will be able to...

• Identify what constitutes compensation between traditional compensation and executive compensation plans
• Apply the multi factor test and independent investor test as established in landmark US Tax Court case law
• Determine where to find resources

Highlights

The major topics covered in this class include:

• An analytical framework for analyzing and opining on reasonable replacement compensation for owner-employees of closely held businesses and professional practices in the context of tax planning, compliance, management consulting and business appraisal assignments
• Executive compensation components, including the valuation of non-qualified plans and restricted stock units