[Verse 1]
When paying executives their salary
There's a test called reasonable you see
Not too high for services they give
One-sixty-two's the rule by which we live
But Congress said one million is enough
Section one-sixty-two M gets tough
[Chorus]
Executive pay has rules to know
Reasonable comp is how we go
One million cap on public company pay
Golden parachutes must give some away
Four-oh-nine A for deferred dreams
Stock options splitting at the seams
[Verse 2]
Golden parachutes sound really nice
But two-eighty G will make you pay the price
Three times your average compensation base
Triggers excess payments you must face
Twenty percent excise tax you'll owe
Four-nine-nine-nine makes the penalties flow
[Chorus]
Executive pay has rules to know
Reasonable comp is how we go
One million cap on public company pay
Golden parachutes must give some away
Four-oh-nine A for deferred dreams
Stock options splitting at the seams
[Verse 3]
Nonqualified deferred compensation waits
Four-oh-nine A sets the proper dates
No acceleration unless the rules allow
Penalties hit if you mess up somehow
Twenty percent plus interest on the gain
Following section rules will ease the pain
[Bridge]
ISOs get special treatment it's true
AMT might still catch up with you
NQSOs are ordinary income when you exercise
Restricted stock with eighty-three B tries
To elect early income recognition
Make your choice with careful precision
[Verse 4]
Carried interest used to be capital gain
But ten-sixty-one changed the game
Three years you must hold before you sell
Or ordinary rates will ring the bell
Partnership profits need the longer wait
Don't let impatience seal your tax fate
[Chorus]
Executive pay has rules to know
Reasonable comp is how we go
One million cap on public company pay
Golden parachutes must give some away
Four-oh-nine A for deferred dreams
Stock options splitting at the seams
[Outro]
From compensation to stock option grants
Every executive payment needs a second glance
Follow the code and plan ahead with care
Tax efficient compensation is always fair