Sec. 19-5.3. General executive officers

(a) A general executive officer must be an officer of the corporation charged with and performing general executive duties of the corporation and elected by the shareholders, elected or appointed by the board of directors, or if initially appointed by another officer such appointment must be ratified by the board of directors. If the place of incorporation is other than New York State, the officer of the corporation must be elected or appointed in accordance with the laws of the place of incorporation.

(b) A general executive officer is an appointed or elected officer of the corporation having company-wide authority with respect to his assigned functions or duties, or is responsible for an entire division of the company. Any person who has merely been designated as an officer but who is not an appointed or elected officer, as described in subdivision (a) of this section, is not a general executive officer.

(c) Personal service compensation paid to a general executive officer of the taxpayer for acting as such is not included in the computation of the payroll factor.