Bloomberg BNA Webinar: Unique Challenges of Compensating Executives in Tax Exempt Organizations

Morgan Lewis partner Robert Abramowitz will present in a webinar sponsored by Bloomberg BNA titled Nonqualified Deferred Compensation for Tax-Exempt Employers.

Tax-exempt employers face special challenges when designing nonqualified deferred compensation plans. The dual applicability of and interplay between sections 457(f) and 409A of the federal tax code pose complex issues, heightened by the lack of definitive guidance. Additional issues are presented by special reporting and other requirements, all in face of increased IRS scrutiny and audit activity in this area.

The panel discusses the design of nonqualified plans for tax-exempt entities, the applicable requirements under section 4958 ("intermediate sanctions"), the constraints on their design imposed by sections 457(f) and 409A, and how to make sure a compensation arrangement is both effective and compliant.

Topics to be discussed:

• How to develop an integrated total compensation strategy to serve as a foundation for decision making (what outcomes to target, relevant peer groups, and reward components)
• How to design plans to maximize use of the 409A short-term deferral exception
• Traps for the unwary under Section 409A, particularly for plans designed to meet the definition of "substantial risk of forfeiture" for 457(f) purposes
• Special issues surrounding executive compensation arrangements of exempt organizations, including Form 990 disclosure and Section 4958 issues