Are management packages still risky?

It has been nearly two years since the Council of State issued a ruling clarifying the tax treatment of income from management packages. Many professionals were concerned by this, but what is the reality of the situation now that the resulting case law is still in its infancy? Here is some background information.

At a time when economic conditions often disrupt companies’ business plans, it has become more difficult to structure LBOs while motivating the executives of companies that opt for this approach through carefully tailored incentive mechanisms. However, there is...