Course Description: This is an intermediate-level course covering the application of Internal Revenue Code §409A to equity-based compensation arrangements, including stock options, stock appreciation rights (SARs), restricted stock, and restricted stock units and other phantom equity arrangements. In this course we will examine the situations in which §409A applies to these arrangements, as well as any relevant exemptions. In addition to explaining important definitions and describing fair market value considerations, this course will discuss the ramifications of modifying, extending, and substituting stock options and SARs pursuant to common corporate transactions, such as spin-offs. 

 Course Level: Intermediate 

 Course Prerequisites: None 

 Delivery Method: Self-study

After completing this course you will be able to: 

• Identify equity-based compensation arrangements that are subject to §409A;
• Understand the applicable exemptions; 
• Determine if any options are issued with respect to service recipient stock; 
• Identify the appropriate valuation methods with respect to both publicly traded and non-publicly traded stock; and 
• Identify modifications, extensions and substitutions that do and do not constitute the grant of a new stock right subject to §409A.

CPE

1

CLE

N/A