SERP Swap

[Guest RonW]

Does the new S-O bill eliminate, or severly limit, SERP Swaps for executives and directors for public held companies?

[mbozek]

Any serp swap that involves an extension of credit between the employer and the employee/director after the effective date of S-O would be subject to the restrictions of S-O for an executive of a publicly held co who is subject to S-O.

[Kirk Maldonado]

mbozek:

How would a SERP swap (by itself) involve a loan from the employer to the executive?

[Guest Harry O]

Most SERP swaps involve the exchange of deferred compensation for second-to-die split dollar life insurance. The life insurance component raises loan issues under Sarbanes-Oxley.

[Kirk Maldonado]

Harry O:

Thanks for the clarification.