Washington (August 6, 2003) -- New golden parachute regulations, issued in conjunction with a revenue procedure for valuing stock options that are treated as golden parachute payments, revise an earlier valuation method for stock options, according to the Internal Revenue Service. 

Under the Internal Revenue Code, a company cannot deduct "excess" golden parachute payments, and an executive has to pay a 20 percent excise tax on the payments. A golden parachute payment is a payment made in connection with a change in ownership or control of a company.

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