Regulators have been waiting years to revamp the infamous Section 162(m) of the IRS code - a portion originally designed to rein in executive compensation that inadvertently led to even greater pay. Recently the IRS may have given them that chance by ruling that compensation for CFOs is no longer covered under the section, which essentially allows them to decide on any pay they wish without worrying about tax consequences.

Why is this a good thing? Well, the move will likely force lawmakers in Washington to take a second look at the issue and finally revamp the ancient rule - just as many candidates are focusing on excess executive compensation. Treating a CFO differently is simply a ruling that cannot stand; and while lawmakers could simply make a quick technical change, it is likely that at least two key lawmakers will want much larger changes to the rule. Barney Frank and Charles Grassley are two lawmakers that have been waiting for an opportunity like this for some time. Whether or not they take action remains to be seen; however, we could soon see new tax law that may finally effectively rein in excessive executive compensation.