With the highly competitive market for senior executive talent and increasing stakeholder scrutiny of compensation and benefit arrangements, tax-exempt organizations are reviewing and updating their compensation and benefits practices at an accelerating rate. With the addition of §4960 to the Internal Revenue Code and the associated excise tax for excess executive compensation, an already difficult situation has become more problematic. There is heightened pressure to get these decisions right and making the wrong call could fail to achieve strategic objectives and unnecessarily cost the tax-exempt organization precious capital.

Most organizations do not have the experience or expertise to fully evaluate the options and make the optimal choice for their leadership, stakeholders and the organization.  In this webinar, we will describe the environment and the impact of recent changes in tax law on executive benefit decisions.  From there, we will review the specific areas that a tax-exempt organization should evaluate before deciding on a particular executive benefit structure, including:

1. Financial Statement Impact
   • Income Statement
   • Balance Sheet
   • Statement of Cash Flows
2. Design and Asset Efficiency
3. Public/Member Disclosure
4. Other Factors/Costs
5. Executive’s Perspective

Attendees will learn how to structure a process designed to result in an objective decision that eliminates bias, properly documents the decision and provides a structure for similar decisions in the future.