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Texas Federal Court ‘Sets Aside’ FTC’s Noncompete Clause Rule

Judge Ada Brown of the US District Court for the Northern District of Texas entered a final judgment in Ryan LLC v. Federal Trade Commission (FTC) on August 20, 2024, holding unlawful and setting aside the FTC Noncompete...more

Federal Trade Commission Noncompete Clause Rule Litigation Update

The Federal Trade Commission on April 23 approved a Final Rule banning almost all worker noncompete clauses (noncompete rule). Absent a court entering a nationwide injunction or vacating the rule, it is set to go into effect...more

Executive Compensation and Employee Benefits Fallout After Sweeping FTC Ban on Noncompetes: Part 4—Timing of Taxation under Code...

This is the fourth part of a multi-part blog post series discussing the implications and fallout from the Final Rule recently adopted by the Federal Trade Commission (FTC) banning the enforcement of almost all noncompete...more

Executive Compensation and Employee Benefits Fallout After Sweeping FTC Ban on Noncompetes: Part 3—Impact on Mergers and...

This is the third part of a multi-part blog post series discussing the implications and fallout from the Final Rule recently adopted by the Federal Trade Commission (FTC), banning the enforcement of almost all noncompete...more

Corporate Transactions: Considerations for Addressing Equity Awards

In corporate transactions of all kinds—mergers, acquisitions, and other business combinations—the purchaser company (Purchaser) must confront the question of how to treat the outstanding equity awards and the current equity...more

Executive Compensation and Employee Benefits Fallout After Sweeping FTC Ban on Noncompetes: Part 2—Prohibited vs. Permissible...

This is the second in a multipart series on ML BeneBits discussing the implications and fallout from the Final Rule recently adopted by the Federal Trade Commission (FTC) banning the enforcement of almost all noncompete...more

Executive Compensation Fallout After Sweeping FTC Ban on Noncompetes: Part 1—The Who, What, When, and What to Do Now

On April 23, the Federal Trade Commission (FTC) approved by a 3-2 vote a Final Rule that, if it becomes effective, will ban almost all noncompete clauses for nearly all workers. This is the first in a blog series exploring...more

SEC Enforcement of Proxy Perquisite Disclosures

The Securities and Exchange Commission (SEC) is continuing its focus on disclosure of executive perquisites—and aircraft usage in particular—in registration statements, periodic reports, and proxy statements....more

FAQs on Federal Trade Commission’s Rule Banning Worker Noncompete Clauses

On April 23, the Federal Trade Commission (FTC), by a 3-2 vote, approved a Final Rule banning almost all worker noncompetes. The Final Rule will go into effect 120 days following its publication in the Federal Register. In...more

FTC Issues Ban on Noncompete Clauses for All Workers, Including Senior Executives After Effective Date

The Federal Trade Commission (FTC) conducted an open commission meeting on April 23 where the five FTC Commissioners voted on a final rule that would prevent employers from enforcing noncompetes against nearly all workers....more

SEC Approves December 1 as Required Compliance Date for Listing Exchange Clawback Requirements

The Securities and Exchange Commission (SEC) approved on June 9 amended versions of the listing exchange standards by the New York Stock Exchange and Nasdaq. Consequently, the clawback rules will become effective on Monday,...more

NYSE, Nasdaq Set December 1, 2023 Compliance Date for Dodd-Frank Clawback Listing Standards

The New York Stock Exchange (NYSE) and Nasdaq, on June 5 and June 6, respectively, amended the proposed listing standards they previously submitted to the US Securities and Exchange Commission (SEC) to extend the compliance...more

SEC Indicates Early August 2023 May Be Deadline for Adoption of Dodd-Frank–Compliant Clawback Policies

In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), new rules directing national securities exchanges, including the New York Stock Exchange (NYSE) and Nasdaq Stock Market (Nasdaq),...more

What Public Companies Should Consider Since the NYSE and Nasdaq Have Issued Proposed Clawback Listing Standards

On October 26, 2022, the US Securities and Exchange Commission (SEC) announced the adoption of its new rules directing national securities exchanges, including the New York Stock Exchange (NYSE) and the Nasdaq Stock Market...more

FTC’s Proposed Ban on Noncompete Clauses May Have Far-Reaching Implications for Executive Compensation

The Federal Trade Commission (FTC) announced a notice of proposed rulemaking on January 5, 2023, that would ban employers from entering into or maintaining noncompete clauses with their workers. The proposal was issued in...more

FAQs on Federal Trade Commission’s Proposed Rule Banning Worker Noncompete Clauses

The Federal Trade Commission’s (FTC’s) January 5, 2023, notice of proposed rulemaking would ban businesses from entering into and maintaining noncompete clauses with workers. In this LawFlash, we answer several frequently...more

SEC Adopts Compensation Clawback Requirements

The US Securities and Exchange Commission (SEC) announced on October 26, 2022, that it has adopted new rules directing national securities exchanges, including the New York Stock Exchange and Nasdaq, to establish listing...more

Steps to Successful Equity Plan Approval (Part 2: Steps 9–15)

In a prior post, we discussed the first eight of 15 recommended steps to consider when submitting an equity plan for shareholder approval. In this post, we discuss the final steps. While we know each situation is different,...more

Steps to Successful Equity Plan Approval (Part 1: Steps 1–8)

Seeking shareholder approval of an equity compensation plan has become a multi-step, often complex process. Gone are the days when management simply would discuss a share increase with the board of directors, and the company...more

IRS Releases Proposed Regulations on Executive Compensation for Tax-Exempt Organizations

The Internal Revenue Service and US Department of the Treasury have released proposed regulations governing the excise tax imposed by Internal Revenue Code Section 4960 on certain executive compensation paid to employees of...more

Inducement Grants Enable Companies to Avoid Depletion of Equity Plan Share Reserves

This LawFlash discusses awarding equity grants to newly hired employees as “inducement grants” outside the shareholder approved plan and the pros and cons of making inducement grants....more

The COVID-19 Test for Compensation Committees

Compensation Committees are addressing whether compensation should be adjusted to reflect the effect of the coronavirus (COVID-19) pandemic on companies’ businesses and how to correlate executive compensation with changing...more

Loans Under Section 4003 or 4116 of the CARES Act: Beware of Executive Compensation Limits

Businesses that avail themselves of financial assistance under Section 4003 or 4116 of the CARES Act must limit compensation and severance paid to certain officers and employees. ...more

CARES Act Brings Compensation, Benefits, and Payroll Tax Changes

With broad bipartisan support, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or Act), signed into law by the president on March 27, provides a $2 trillion economic stimulus and contains numerous and...more

IRS Publishes Proposed Regulations Under Section 162(M)

The Internal Revenue Service (IRS) published proposed regulations on December 20, 2019, under Section 162(m) of the Internal Revenue Code (Code), which implement the amendments to Section 162(m) set forth by the 2017 Tax Cuts...more

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