Events

Webinar: Compensation Strategies for Section 4960

Events / Thursday, July 15, 2021

Plan design alternatives to help tax-exempt organizations handle the provisions of Excise Tax Code Section 4960.

Moderated by Kenneth Feinberg, this webinar will discuss a cost-effective, tax-efficient and public perception-sensitive method of delivering executive compensation benefits that are not subject to the Section 4960 excise tax regimen.

Our expert panel will discuss a method to structure such a program to reward, recruit and retain key talent for organizations utilizing these strategies.

For questions, please contact Lindsay Sonich at lsonich@bakerlaw.com or Mike Stagnitta at michael.stagnitta@nfp.com.

Background

The Tax Cuts and Jobs Act of 2018 included provisions affecting tax-exempt organizations with respect to the compensation paid by certain tax-exempt organizations to their senior officers. In general, under Code Section 4960, the payment of so-called excess remuneration (annual compensation in excess of $1 million) and parachute payments (payments triggered by an executive’s separation from service where the total amount of those payments exceeds three times the executives average annual compensation) result in an excise tax of 21% imposed on the tax-exempt entity or, if different, the actual payor of the remuneration.

Moderator

Kenneth R. Feinberg
Mr. Feinberg has been key to resolving many of our nation’s most challenging and widely known disputes. He is best known for serving as the Special Master of the Federal September 11th Victim Compensation Fund of 2001, in which he reached out to all who qualified to file a claim, evaluated applications, determined appropriate compensation and disseminated awards. Mr. Feinberg has been appointed to two presidential-level commissions because of his experience and expertise and has had a distinguished teaching career as an Adjunct Professor of Law at Harvard Law School, Georgetown University Law Center, the University of Pennsylvania Law School, Columbia University Law School, New York University Law School and the University of Virginia Law School.

Panelists

Kristin Bulat, NFP
Ms. Bulat is Senior Vice President, Strategic Resources at NFP. Throughout her career she has been responsible for implementing complicated tax plans for individuals while simultaneously guiding business development. A tax attorney with a JD and an LLM in taxation, Ms. Bulat is a sought-after speaker within her industry.

Brian Rodgers, NFP
Mr. Rodgers has over 20 years of experience in the executive benefits industry, with a special focus on BOLI and COLI. His primary responsibilities at NFP include building and maintaining relationships with non-profit organizations, financial institutions and corporations across the country. Mr. Rodgers works to design, implement, communicate and manage split dollar plans, non-qualified deferred compensation plans and supplemental executive retirement plans (SERPs) for key executives and directors.

Alan Meltzer, NFP
Mr. Meltzer has worked in the life insurance and estate planning fields for over 40 years, earning MassMutual’s highest honor, Agent of the Year, an unprecedented 18 times during his career. Mr. Meltzer founded The Meltzer Group in 1982 as a single insurance agent, and grew the firm to one with more than 300 dedicated team members across five lines of business, and to a point where it was consistently recognized as the largest insurance consultant in the Greater Washington, D.C. area.

Raymond M. Malone, BakerHostetler
Mr. Malone has more than 35 years of experience in the employee benefits and executive compensation areas. He assists public and private companies, large tax-exempt organizations, and other types of employers with executive compensation arrangements and Employee Retirement Income Security Act (ERISA)-related issues, including transactional support.

John J. McGowan, Jr., BakerHostetler
With nearly 35 years of Employee Retirement Income Security Act (ERISA) and related employment, tax, healthcare and securities law experience, Mr. McGowan represents benefit plans (and plan-covered individuals), plan sponsors, plan fiduciaries and executives. He is particularly adept at handling the special regulatory challenges and disputes that plan sponsors, plan fiduciaries and other stakeholders face when things go wrong, regardless of the root cause.

Webinar Recording


About NFP

NFP is a leading insurance broker and consultant providing specialized property and casualty, corporate benefits, retirement and individual solutions. We enable client success through the expertise of our professionals across the globe, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors and financial institutions. 

About BakerHostetler

BakerHostetler, one of the nation’s largest law firms, represents clients around the globe. With offices coast to coast, our nearly 1,000 attorneys litigate cases and resolve disputes that potentially threaten clients’ competitiveness, navigate the laws and regulations that shape the global economy, and help clients develop and close deals that fuel their strategic growth.

Our employee benefits attorneys develop integrated benefits solutions for employers of all sizes, types and complexities, while also working closely with colleagues in the firm’s nationally recognized employment, tax, corporate and tax-exempt organization law practices.

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