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A potentially major improvement in rules for ESOP defense contractors was included in the Senate Armed Services Committee’s markup of the 2022 National Defense Authorization Act (NDAA, S 2042). An amendment from Sen. Jean Shaheen (D-NH) would provide that the Department of Defense should create a pilot program that would allow companies that are or become 100% ESOP-owned to receive noncompete follow-on contracts for the work, even if they no longer meet applicable small business or other set-aside requirements.

In recent years, the Department of Defense Contract Audit Agency (DCAA) has taken the position that interest paid on ESOP loans is not a compensation cost reimbursable by the government in defense contracts.

In Notice 2005-1, the IRS has issued guidance on the new deferred compensation plan rules under Section 409(a) of the Internal Revenue Code. The guidance covers a broad range of issues, including some specifically concerning equity compensation.

The National Commission on Fiscal Responsibility and Reform (often referred to as the president's deficit commission) has suggested as an "illustrative" tax reform that Congress should "consolidate retirement accounts; cap tax-preferred contributions to the lower of $20,000 or 20% of income, [and

Because inflation has grown at a negative rate over the last year, the IRS has announced there will be no changes in the various limits for contributions, distributions, defining highly compensated employees, and employee deferrals for 2010.

The House Ways and Means Committee heard testimony on April 17 about the current system of retirement tax incentives. The five witnesses all suggested that eliminating the current tax incentives would weaken the state of retirement security.

A study that the NCEO has referred to for years has been formally published in a volume of research papers titled Advances in the Economic Analysis of Participatory & Labor-Manage

Indications are mounting that the rules requiring companies to expense options could be delayed. Securities and Exchange Commission Chief Accountant Donald Nicolaisen said he would favor a one-year delay.

Deloitte's 2012 global share plan survey covers the eligibility and participation, plan design, communications practices, tax compliance, country specific administrative practices, and administration of various types of equity compensation offered by multinational companies.

In its new 2005 Stock Compensation Survey, Deloitte Consulting LLP reports that 75% of responding companies plan to reduce, or had already reduced, the number of options they grant. Public companies were more likely to reduce options than private companies, by an 83% to 53% margin.