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Management Consulting/Executive Transition Coaching


Would "executive transition coaching" services being received by a formerly employed executive be considered a taxable fringe benefit to the executive, especially in light of the fact the coaching services are billed directly to the former employer and then the former employer is paying those invoices directly to the provider of the coaching services?

Hello Dana,

Thanks for your question.  I did some research and this is not an easy answer, as you might guess, given the final interpretation is with the IRS (remember Congress makes the law; the IRS just enforces it), and, the position your employer takes with respect to the benefit and the law.

Here is the link I used to attempt to provide an intelligible answer. (this is a perfect example as to how we wound up with 77,000 pages of tax law).

In my opinion, not much help in working through the conditions and stipulations.

I suggest you chat with your employer. Your employer will make the decision, based on their interpretation of the law and decide whether the benefit is non-taxable, W-2 reportable, etc.  I would think seeking the advice of a tax professional would be a waste of time and money as your employer will probably make the decision and act accordingly.

Sorry I could not be of more help.

Best of luck with this Dana!



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Mark Eichinger


Any type of question related to domestic and international Human Resources work. Topic categories would include Employment Practice, Compensation design and systems in competitive markets, Health and Safety in Industrial Environments, Diversity Management, Performance Management, Talent and Career Management (Hiring, Selection, Employee Development), Communications, Coaching, Counseling, Leadership, and Management. Can’t answer: I am sure there are questions within these categories that may surface that I may not be able to answer but my experience below would suggest those would be few.


I own International Human Resources Coaching and Consulting, LLC. I successfully held corporate leadership positions from 1979 to 2007 in two $9B+ multi-national corporations. Positions included: Vice President, Human Resources for the Asia Pacific Region, Eaton Corporation; I was based in Shanghai, China. Prior to that assignment, Vice President, Human Resources Operations, Eaton World Headquarters, Cleveland, Ohio with global responsibility for Eaton’s Human Resources practices, international assignee management, and Regional Human Resources Directors in Asia Pacific, Europe, Middle East and Africa and Central and South America. Specifically, my experience spans work at domestic and international locations at the operating plant, division, business unit, and corporate levels and most business scenarios to include startups, closedowns, restructurings, integrations, and ongoing operations. I am an Eaton Business Excellence Assessment Examiner (Malcolm Baldrige based system). I introduced processes and process mapping into the Human Resources environment. I have extensive experience with and working in domestic and international organization matrix structures. In the Asia Pacific region I created and led the Asia Pacific level H.R. team, the professional and general manager development programs, China’s university relations program and managed the Asia Pacific key leaders process. I have coached managers and leaders. I am a professional listener, my style open, direct, and focused on leader accountability and employee engagement. In Summary, my career responsibility included more than 60,000 employees, 60 union and union free operations, and 45 countries. I also lived in Korea for two years while in service with the USA’s armed forces.

SCORE – Counselors to Americas Small Business; at various locations I have also belonged to Rotary, Lions, Kiwanis and the Chamber of Commerce. I have served on Boards of medical, community and institutional organizations.

Bachelor of Science in Business Administration, Youngstown State University MBA work Youngstown State University, and University of Bridgeport University of Tennessee, Lean Manufacturing Certified Thunderbird School of Global Management, Management Certified.

Awards and Honors
Corporate level awards for compensation systems, communications campaigns.

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