FALLACIES OF PRESUMPTION: UNPACKING THE IMPACT OF THE SECTION 409A PROPOSED REGULATIONS ON STOCK APPRECIATION RIGHTS ISSUED BY PRIVATELY-HELD COMPANIES.

The article discusses the passage of section 409A or the stock appreciation rights (SARs) code provision. Equity appreciation rights in employer stock were made subject to the new rules making SARs an unattractive deferred compensation tool. The view that the only viable method for valuing privately-held company stock are still severely disadvantaged is revealed.