Mondaq – The Internal Revenue Service (the “IRS”) has issued Revenue Ruling 2014-18 (the “Ruling”)1, which generally confirms that a stock-settled stock option or stock appreciation right that is granted with an exercise/base price of no less than the fair market value of the underlying stock on the date of grant will not be considered “nonqualified deferred compensation” subject to Section 457A of the Internal Revenue Code of 1986, as amended.2 Section 457A effectively ended the practice of offshore hedge fund fee deferrals.
Possible Offshore Deferrals For Hedge Fund Managers
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