Multinational And Non-US Companies Need to Address Compliance With US Code Section 409A

Originally published March 31, 2008

Keywords: compliance, US Code Section 409A, non-US deferred compensation plans, employment agreements, severance plans, certain equity-based compensation, certain bonus arrangements, fringe benefit arrangements, expense reimbursement arrangements, indemnification arrangements, change in control agreements, and tax gross-up arrangements

We recently distributed a client alert relating to the January 1, 2009, deadline for compliance with the final regulations issued under Section 409A of the US Internal Revenue Code (the "Code"), governing nonqualified deferred compensation arrangements. (See " Section 409A Deadline Ahead: Current Action Required.") This alert is intended to remind our multinational and non-US clients that the application of Code Section 409A does not stop at the "water's edge" and may reach non-US deferred compensation programs and