ERRATUM: AN INTRODUCTION TO US TAX ASPECTS OF EXECUTIVE/EMPLOYEE COMPENSATION WITH A STOCK OPTION FOCUS

Abstract

This paper introduces the reader to the US tax aspects of executive and employee compensation. It presents the basic tenets of the income tax system within which the context of employee compensation can be better understood. It discusses taxable and tax free fringe benefits and then focuses on the restricted employee stock option rules. With the accounting regulators both within the US and worldwide moving to require the expensing of stock options, alternative compensatory schemes are also presented.