Chuck Fleischmann for Congress named Tom Decosimo, Managing Principal at DCF, the campaign's finance chairman today.

According to Mr. Decosimo, “Chuck’s business experience, intellectual depth, ethical, moral, and conservative grounding, and exceptional work ethic combine to make Chuck a very effective voice for the 3rd district. His command of the complex issues facing our nation and our region has earned him the respect of his colleagues and Congressional leadership. Most importantly, Chuck's understanding of the issues has earned him the trust of the citizens that he has faithfully represented. I am honored to serve Chuck Fleischmann for Congress, and I feel a deep sense of civic duty to help return Chuck to Congress.”

Congressman Fleischmann stated, “I am very thankful to have Tom’s support and help as the 2012 election draws closer. Tom has been a fixture of the Chattanooga area and is well-respected throughout the business community. I have relied on Tom’s advice in many areas during my service in Congress. I am pleased that he has examined my ...

Many of our clients struggle with the question of how to compensate and appropriately incentivize key employees. One solution relied on by the compensation committees of many public companies is to grant equity securities, such as shares of stock or stock options, to key employees. This strategy aligns the economic interests of owners and managers, because the employees benefit from an increase in the value of the underlying enterprise.

While the granting of equity securities to incentivize managers is a practical solution in a publicly traded company, the vast majority of businesses are not publicly traded. The nonmarketable minority interests of privately held businesses present a number of complications when used as incentive securities. For example, options of a Subchapter S corporation may be treated by the IRS as a second class of stock, causing the S election to be lost. Further, securities of any pass-through entity (such as an S corporation, partnership, or LLC) issued to incentivize employees may complicate the tax situation of both the employee and the employer.

For these and other ...