Category

Board of Directors

Category

We are seeing an accelerating trend among U.S. companies to add non-U.S. residents to their Board of Directors.  This makes sense: as more and more companies “go global” and expand in ever more countries, their Boards should reflect the global nature of the company.

What takes many companies by surprise, however, is that the tax treatment of cash compensation paid and equity awards granted to the non-U.S. directors can be quite complex.  In addition, for the equity awards, companies will need to consider regulatory restrictions such as securities law requirements and ensure that the grants can fall under an exemption.