Alert September 16, 2008

Goodwin Procter’s ERISA and Executive Compensation Group Issues Reminder on December 31, 2008 Deadline for Section 409A Compliance

As a reminder, all compensation arrangements that may be subject to Section 409A of the Internal Revenue Code (e.g., employment agreements, change in control agreements, deferred compensation plans, SERPs, discounted stock options, deferred or restricted stock units, bonus arrangements) must be amended by December 31, 2008 to be in compliance with Section 409A, or, in certain circumstances, amended to avoid being subject to Section 409A.  Employment agreements, in particular, should be reviewed for Section 409A compliance, regardless of whether the employer is public or private. Goodwin Procter’s ERISA and Executive Compensation practice group has extensive experience in addressing these issues.