Jump to content

Deferral of stock into nonqualified plan


Guest Lori Basilico

Recommended Posts

Guest Lori Basilico

I read an article which discussed the ability of participants to defer the receipt of stock issued upon the exercise of non-qualified stock options into a non-qualified deferred compensation plan. Can this still be done? Also, can a participant defer the receipt of restricted stock received as a bonus into a deferred compensation plan?

Link to comment
Share on other sites

Guest wmacdonald

Yes you can. This concept has increased in prevalance over the last few years. You can defer the gain with no charged to earnings, as long as you hold the shares in stock. I have a presentation on my web site that I recently did at the World at Work Conference that explains the concept in detail (chart etc). Also, we have a Executive Topics on the site that goes into detail. Yes you can also defer restricted shares, and can diversify the stock into other assets, without a charge to earnings. Info on site is http://www.crgworld.com.

Link to comment
Share on other sites

Guest wmacdonald

You are right on the charge to earnings, as it relates to stock options. What I mentioned was no charge to earnings on the deferral of restricted shares. The reason for that, is the company has already charged them off. There of course would be accounting for the investment you make, after cashing in the shares.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...