Internal Revenue Code Section 409A: Regulates deferred compensation arrangements, including certain types of incentive plans, to ensure compliance with specific timing and distribution requirements
Internal Revenue Code Section 83: Governs the taxation of property transferred to employees in connection with the performance of services, including timing of taxation and valuation issues
Internal Revenue Code Section 162(m): Limits the tax deductibility of compensation paid to certain covered employees of public companies above $1 million
Securities Act of 1933: Regulates the offering and sale of securities, including equity-based incentives, requiring registration or qualification for an exemption
Securities Exchange Act of 1934: Governs ongoing reporting requirements and trading of securities, affecting equity-based incentive plans in public companies
SEC Rule 701: Provides an exemption from registration for private companies offering equity compensation to employees
Fair Labor Standards Act: Establishes standards for wage and hour requirements that may impact how incentives are structured and calculated
ERISA: Sets standards for employee benefit plans, potentially affecting certain types of incentive arrangements that qualify as employee benefit plans
Equal Employment Opportunity Laws: Ensures incentive plans are implemented in a non-discriminatory manner across protected classes
State Securities Laws: Known as 'Blue Sky Laws', these state-specific regulations govern the offering and sale of securities within each state
State Tax Laws: State-specific tax implications for incentive compensation, including income tax and capital gains considerations
State Employment Laws: State-specific requirements affecting employment relationships and compensation arrangements
State Contract Laws: General contract principles and state-specific requirements affecting the formation and enforcement of incentive agreements
Corporate Governance Requirements: Internal corporate requirements and procedures for implementing and administering incentive plans
Stock Exchange Rules: For publicly traded companies, specific requirements from stock exchanges regarding equity compensation and shareholder approval
ASC 718: Accounting Standards Codification guidance for share-based payment arrangements, affecting how incentives are recorded and reported financially
