Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (1752)	7/12/2000 8:15:30 AM
From: donjuan_demarco	Read Replies (1) \| Respond to of 4155

Mr. Aloha, Gary Wendt pays the taxes on the $45m. If you look at the 8K, it says that Wendt gets reimbursed for excise taxes under section 4999 of the IRC, plus associated interest and penalties. Section 4999 applies only to the 20% excise tax on excess golden parachute payments, which is defined in section 280G(b). It has nothing to do with the regular income tax. The $45m payment is not a golden parachute payment (in very general terms, a golden parachute payment is a payment made to a departing executive after a change of control of the company). So, we know that CNC is not on the hook for income taxes related to the $45m. Then what IS Conseco on the hook for? My take is that CNC is on the hook for the excise taxes on payments made to Wendt upon a change of control of CNC.