280G

280G

Knowledgeable, Experienced Consultants

Hatch & Associates, among other things, make sure that (while using what 280G stands for) an executive receives their safe harbor (which can be up to three times their base amount) upon termination.

THE GOLDEN PARACHUTE

The golden parachute rules (under section 280G) are intended to discourage excessive compensation payments to executives in the event of a CIC (change-in-control benefits) by imposing negative tax consequences to both the company and the recipient. Under the rules, if the present value of a CIC payment to an executive exceeds his/her “safe harbor” (three times the executive’s average taxable compensation over the five most recent calendar years preceding the CIC or their “base amount”), the company loses tax deductions for the amounts considered “excess parachute payments.”

That’s where “the golden parachute” and 280G come into action; the 280G is basically a way to keep golden parachutes under control (think “golden handcuffs”). Additionally, the executive is required to pay a 20% excise tax on the excess payment. To discourage these excess payments (and thus the taxation), Section 280G has been added to the IRC by Congress.

COMPENSATION STRATEGIES

Assisting companies and boards to align executive pay with corporate goals.

STRATEGIC BUSINESS STRATEGIES

Assisting companies to demonstrate and enhance the value of their business function.

BENEFIT PLAN SERVICES

Assisting companies with the design, implementation and analysis of their health, welfare and employee benefit plans.

FORENSIC SERVICES

Questions, disputes and requests for forensic practices can arise in HCAS. Our HCAS professionals are called upon to conduct expert studies and testify as compensation and benefits experts in civil and regulatory cases regarding bankruptcies, divorces, employment contract disputes and fair compensation cases.

GOLDEN PARACHUTES

The golden parachute rules are intended to discourage excessive compensation payments to executives in the event of a CIC by imposing negative tax consequences to both the company and the recipient.

OTHER SERVICES

  • Performance management consulting
  • 280G
  • Consultants and executive expert witnesses
  • Executive compensation consulting
  • Executive compensation expert witness
  • Performance management consulting
  • Healthcare compensation consulting
QuoteLeft

I am a new customer who found your company on Google and was extremely pleased with the quality of service. I want to thank you for your prompt attention and compliment your friendly staff who answered my questions. I’m grateful to have found such a professional company such as yours and  I will continue to recommend  you in the future.

I am a new customer who found your company on Google and was extremely pleased with the quality of service. I want to thank you for your prompt attention and compliment your friendly staff who answered my questions. I’m grateful to have found such a professional company such as yours and  I will continue to recommend  you in the future.

Quote-Right