Golden Parachute Compliance Services
Private Company Shareholder Vote Calculations and Support
It is a myth that the Golden Parachute excise tax only affects public companies. The rules DO apply to private companies. Fortunately, where private companies are concerned the golden parachute excise tax can be avoided if a proper shareholder vote is achieved. A private company engagement typically involves the preparation of golden parachute excise tax computations, and assisting the company’s legal advisors in drafting shareholder approval and waiver documents.
Golden Parachute Mitigation Strategies
During the course of an engagement, we will explore supportable tax mitigation strategies which minimize golden parachute excise tax costs, maximize cash flow to the executives, and maximize deductibility and cash flow to the corporation.
M&A Due Diligence Support Services
We understand the challenges surrounding M&A, and our team is ready 24/7 to meet your needs quickly and efficiently. To assist us with efficiency, the firm subscribes to various compensation and public databases that give us the ability to obtain publically available data and documents instantly.
Proxy Support – Compensation Discussion and Analysis (“CD&A”)
All public companies are required to provide annual hypothetical golden parachute calculations. Our professionals are available to provide assistance with year-end proxy computations and language.
Change-in-Control Plan Design and Cost Analysis
A Question often asked is “What is the best strategy to minimize excise taxes and maximize cash flow to the executives, and at the same time maximize tax deductibility to the Corporation?” The best golden parachute planning occurs when employment arrangements and equity compensation plans are being drafted. It is recommended that all plans and agreements be reviewed every few years to analyze the current impact in the event of a change in control. We will provide recommendations on how best to structure the plans and agreements in order to maximize wealth and minimize taxes in the event of a change in control. This type of planning often results in a “WIN – WIN” situation to all parties involved.
It is often necessary to provide valuation support to minimize the impact of the golden parachute tax penalties. The most common valuation engagement is ascribing value to an executive’s non-competition restrictions. Such an engagement typically requires a business valuation, as well as a reasonable compensation valuation study. Our deliverable is a comprehensive report issued to both the company and executive so that in the event of an audit, the respective taxpayer has the necessary supporting documents.
Other Valuation Support
During the course of an engagement, we are available to perform other valuation support services, such as actuarial and stock option valuations.
Payroll/Executive Support Services
Often Payroll departments do not have the capability to deal with the golden parachute rules. We are available to assist the company payroll department in preparing executive payroll schedules to ensure accurate withholding and reporting. We are also available to provide the Executives with individual cash flow schedules to help them better understand their personal situation.