Equity Compensation and the Trump Administration
Executive Director
Although the incoming Trump administration has not yet provided any specific guidance on its plan regarding equity compensation, some indications are available.
Bruce Brumberg wrote in his November 14 blog post that a review of the SEC filings from Trump companies clearly indicates the use of stock options, both for Trump himself and for other employees. More importantly, Brumberg observes that the Trump tax reform proposal would change ordinary income but not capital gains rates, though it is unclear whether he will work to eliminate the alternative minimum tax (AMT).
In a November 11 blog post, Jennifer Namazi at the National Association of Stock Plan Professionals notes that Trump's victory dramatically improved the prospects for some version of the Financial Choice Act, which failed to advance in the prior Congress. The act would undo parts of the Dodd-Frank act, such as the disclosure of CEO pay ratios.