I’ve been complaining about Section 409A of the Internal Revenue Code for some time. I think it ought to just be repealed. I am not hearing a lot of people joining me in my call to repeal Section 409A (but see http://www.409adismay.blogspot.com). I appear to be alone, although maybe not entirely. I was surprised and happy to read this in the Wall Street Journal, in an editorial written by Ken Langone, one of of the founders of Home Depot:

Rules against providing stock options would have prevented us from incentivizing worthy employees in the start-up phase…

I presume that Mr. Langone has the same complaint I have. Why make it more difficult for startups and early stage companies to award equity compensation? It would seem to me that if we want startups to thrive, we ought to reduce the red tape that they have to comply with in order to do business.