Equity Award Drafting Checklist (Section 409A Compliance)

Summary

This checklist provides best practices and considerations for private employers on how to draft equity award grants of stock options, stock appreciation rights (SARs), and restricted stock units (RSUs) to comply with or be exempt from the requirements of Internal Revenue Code (I.R.C.) § 409A and the regulations issued thereunder (section 409A). This checklist addresses Section 409A and does not cover all potential state and local tax distinctions.