Recent IRS ruling prompts another look at multi-year incentive compensation arrangements

June 2014
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Recent IRS ruling prompts another look at multi-year incentive compensation arrangements

At a glance

A Revenue Ruling released by the IRS last week reinforced the ability of fund managers to use options and stock appreciation rights in a multi-year compensation arrangement. While this ruling does not significantly change the scope of relief from Section 457A, it will be interesting to see whether the fresh interest it has created will prompt more funds to consider using such a vehicle.