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 employees.
B)The limitation applies to all officers.
C)The limitation applies only to the CEO and three other highest compensated officers.
D)The limitation applies only to the CEO, CFO, three other highest compensated officers, and all covered employees from previous years.

Question

Quizplus · Accepted Answer

The $1,000,000 limit on covered employees for publicly traded companies applies only to the CEO, CFO, three other highest compensated officers, and includes all covered employees from previous years. This means once an employee is considered a covered employee subject to the limit, they remain so in subsequent years.

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