Management Package: A Guide to Avoiding Reclassification as Salary – Article published in DAF Magazine on May 4, 2017 – by Jérôme Commerçon
Management Package: A Guide to Avoiding Reclassification as Wages
Article published in DAF Magazine on May 4, 2017
In an LBO, CFOs are part of the "management package."
The reward is the hope of substantial capital gains—and the risk that the tax authorities might reclassify them as wages.
Therefore, a stock option-type mechanism or a contractual buyback agreement should be avoided.
Our partner Jérôme Commerçon explains in DAF Magazine.
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