Amber Corporation, a publicly held corporation, currently pays its president an annual salary of $900,000. As a means of increasing company profitability, the board of directors increased the president's compensation effective January 1, 2017, with a performance based compensation program. This program increased the president's compensation by 6600,000 in 2017, 5650,000 in 2018, and $750,000 in 2019 and 2020. Her compensation under this performance-based compensation program is expected to remain at $750,000 in 2021 Prepare a letter to Amber Corporations's board of directors that Identifies the amount of compensation that will be deductible by Amberin 2021 and explains whether any changes should be made to the president's compensation plan in 2021. Address the letter to the board chairperson, Angela Riddle, whose address is 150 Ereview Tower, Cleveland, OH 44106 SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 September 16, 2021 Ms. Angela Riddle, Chairperson Board of Directors Amber, Inc 150 Ereview Tower Cleveland, OH 44106 I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president. The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan. In 2017, the president earned an additional $600,000 under her revised contract. This amount increased to $650,000 in 2018, $750,000 in 2019 and 2020, and it is projected that she will increase her earnings by $750,000 under this plan in 2021, In general, any salary paid to the president in excess of s is deemed excessive executive compensation and not deductible 2018, compensation earned under a performance-based compensation option subject to this limitation. Therefore, in 2017, Amber Corporation deducted compensation as The Tax Cuts and Jobs Act (TCJA) of 2017 made significant changes to this area of the law. In 2018, the annual limit compensation, commissions, and performance-based compensation unless these amounts were part of a contract as of November 2, 2017, and there have been no material modifications to the contract. Since the president's contract was in place as of November 2, 2017, and no material changes have been made to the contract, Amber able to deduct the compensation paid to the president in 2020 and 2021. be I recommend that you any changes to the president's performance-based compensation contract. Doing so could be a material modification that would make the contract to the new provisions. If, in the future, modifications need to be made to her contract, please consult with us at that time so that we can structure the changes in the most tax-efficient manner. Amber Corporation, a publicly held corporation, currently pays its president an annual salary of $900,000. As a means of increasing company profitability, the board of directors increased the president's compensation effective January 1, 2017, with a performance based compensation program. This program increased the president's compensation by 6600,000 in 2017, 5650,000 in 2018, and $750,000 in 2019 and 2020. Her compensation under this performance-based compensation program is expected to remain at $750,000 in 2021 Prepare a letter to Amber Corporations's board of directors that Identifies the amount of compensation that will be deductible by Amberin 2021 and explains whether any changes should be made to the president's compensation plan in 2021. Address the letter to the board chairperson, Angela Riddle, whose address is 150 Ereview Tower, Cleveland, OH 44106 SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 September 16, 2021 Ms. Angela Riddle, Chairperson Board of Directors Amber, Inc 150 Ereview Tower Cleveland, OH 44106 I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president. The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan. In 2017, the president earned an additional $600,000 under her revised contract. This amount increased to $650,000 in 2018, $750,000 in 2019 and 2020, and it is projected that she will increase her earnings by $750,000 under this plan in 2021, In general, any salary paid to the president in excess of s is deemed excessive executive compensation and not deductible 2018, compensation earned under a performance-based compensation option subject to this limitation. Therefore, in 2017, Amber Corporation deducted compensation as The Tax Cuts and Jobs Act (TCJA) of 2017 made significant changes to this area of the law. In 2018, the annual limit compensation, commissions, and performance-based compensation unless these amounts were part of a contract as of November 2, 2017, and there have been no material modifications to the contract. Since the president's contract was in place as of November 2, 2017, and no material changes have been made to the contract, Amber able to deduct the compensation paid to the president in 2020 and 2021. be I recommend that you any changes to the president's performance-based compensation contract. Doing so could be a material modification that would make the contract to the new provisions. If, in the future, modifications need to be made to her contract, please consult with us at that time so that we can structure the changes in the most tax-efficient manner