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The Employee Ownership Update

Corey Rosen

September 30, 2005

(Corey Rosen)

New Regulations on Deferred Compensation Issued

The Treasury Department and IRS have issued proposed regulations on deferred compensation under Section 409A, which governs nonqualified deferred compensation to employees, directors or other service providers. The proposed regulations identify which plans and arrangements are covered, outline operational requirements, and describe permissible timing for deferred compensation payments made under the rules. The rules also extend the deadline for documentary compliance to December 31, 2006. The deadline was initially December 31, 2005. The effective date proposed for the regulations is January 1, 2007. Taxpayers may rely on the proposed regulations until final regulations are effective. The regulations are over 200 pages long and as are described by experts as extremely complex. The Treasury Department press release on the regulations is here and includes a link to download the text of the regulations.

NCEO Executive Director Speaks at Charles Schwab Presentation Series and at Business Schools

Charles Schwab is sponsoring a series of events featuring NCEO executive director Corey Rosen speaking about employee ownership. Several meetings will be held over the next several months on the future of broad-based equity plans, each of which will include a panel of experts assessing the impact of recent changes in accounting rules and shareholder approval requirements, as well as discussing what companies can and should do with these plans. The first is scheduled for Minneapolis on October 11 from 8:30 a.m. to 10:00 a.m. Contact Mark Clem at Schwab for details. Registration is free.

In addition, Corey Rosen will be speaking at leading business schools around the country, starting in the next two weeks at MIT, Harvard, Stanford, UCLA, USC, and the University of Minnesota. NCEO members interested in attending any of these presentations should contact Deborah Krant at dkrant@nceo.org.

NCEO Board Nominees Sought

The NCEO's annual board elections will be held in January by e-mail. Board members serve for a three-year term and can run for reelection one time. Board members must attend the annual board meeting just prior to the annual conference and be available for periodic conference calls. Board committee work is very limited, but volunteer efforts, such as writing articles, helping raise funds for special projects, and providing feedback on projects, is very much appreciated. Interested candidates should submit a 75-word statement indicating who they are and why they are running by December 15. Please send all statements to Corey Rosen at crosen@nceo.org.

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