The Markets March 10, 2009

Calif. Trucking Company Suspends 401(k) Match

San Mateo, California-based trucking company Con-way announced Monday it is suspending its 401(k) match and taking a number of other cost-cutting steps.
Reported by

According to a Reuters news report, in addition to the match suspension, Con-way also dropped a provision in its defined benefit plan for benefit increases based on future employee compensation hikes.

Con-way said the measures, to be implemented early in the second quarter, should save between $100 million and $130 million in 2009, the news report said.

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“With these market conditions, which we don’t expect to change in the near term, there is too much capacity chasing too little freight, so we have to manage accordingly,” CEO Doug Stotlar said in a statement, according to the report. “We’re taking prudent steps to control expense, protect our market share, and conserve capital.”

Stotlar announced he was taking a 10% pay cut and most employees would see a 5% salary decrease.

Products March 10, 2009

Options Web Site Updates Tax Content

The myStockOptions.com Web site has updated its content about the effects of recent federal tax law changes on stock compensation programs.
Reported by

A news release from the Web site said the revised articles are in the site’s Tax Center and deal with the filing and reporting of tax returns that involve stock options, restricted stock, restricted stock units, stock appreciation rights, and employee stock purchase plans.

Core articles and FAQs spell out the most common mistakes people make with stock grants on their tax returns, the release said.

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According to the release, the updated content deals with:

  • stock compensation issues that draw IRS scrutiny
  • key changes in the income exemption amounts for calculating the alternative minimum tax (AMT)
  • revised rules for using old AMT credits to help taxpayers stuck with ISO stock whose value has dropped
  • the effect of stock compensation on any remaining eligibility to receive the 2008 tax rebate for individuals
  • the complexity of estimated taxes
  • netting capital gains and losses with company stock
  • the impact of the deferred compensation provisions in IRC Section 409A
  • the effect of stock compensation on eligibility to receive the Making Work Pay Credit under the 2009 stimulus law.

     

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