The penalty is part of a new section of the tax code clamping down on salary and bonus deferrals, executive retirement and benefit plans, severance packages, discounted stock options and even stock appreciation rights.

FORBES: Strings Attached

Worker unions would like those employees to benefit from a more generous severance package while employers want to stick to existing layoff plans that would limit their obligations.

WSJ: French Unions, Firms Weigh Flexibility Plan

So, for example, just because a business calls an executive benefit a stock option or a severance pay plan doesn't necessarily remove the plan from the sweep of the law.

FORBES