Which of the following statements is true regarding the $1,000,000 limit on covered employees for publicly-traded companies?
A) The limitation applies to all officers.
B) The limitation applies only to the CEO and three other highest compensated officers.
C) The limitation applies to all employees.
D) The limitation applies only to the CEO and three other highest compensated officers, not including the CFO.

Question

Quizplus · Accepted Answer

The $1,000,000 limit on covered employees for publicly-traded companies, as per the Internal Revenue Code Section 162(m), applies to the CEO and the three other highest compensated officers, excluding the CFO.

Which of the Following Statements Is True Regarding the $1,000,000