Today’s column reports on tax and securities law developments in 2018 affecting executive compensation.

Tax Developments

Change in the Corporate Tax Rate. Effective for taxable years beginning after Dec. 31, 2017, the ordinary income tax rate for corporations is 21 percent. This replaces the prior ordinary income tax rate structure for corporations that ranged from 15 percent to 35 percent. This change is contained in §13001 of the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97, 131 Stat. 2054 (Dec. 22, 2017)) (the 2017 Tax Act).