Treatment of deferred compensation plans. For purposes of subchapter S, an instrument, obligation, or arrangement is not outstanding stock if it— (i) Does not convey the right to vote; (ii) Is an unfunded and unsecured promise to pay money or property in the future; (iii) Is issued to an individual who is an employee in connection with the performance of services for the cor- poration or to an individual who is an independent contractor in connection with the performance of services for the corporation (and is not excessive by reference to the services performed); and (iv) Is issued pursuant to a plan with respect to which the employee or inde- pendent contractor is not taxed cur- rently on income. A deferred compensation plan that has a current payment feature (e.g., pay- ment of dividend equivalent amounts that are taxed currently as compensa- tion) is not for that reason excluded from this paragraph (b)(4).
Appears in 9 contracts
Samples: Supplemental Contract, Publishing Agreement, Supplemental Contract
