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Corporate Governance Stock Options

Dechert LLP

Virtual Employee Participation Programs (EPSPs): Important Developments in German Case Law Impacting Vesting Rules

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Employee participation programs are generally subject to sec. 305 ss. of the German Civil Code (BGB) governing the content control of general terms and conditions (GTC) if they are provided by the employer and were prepared...more

Holland & Knight LLP

Understanding Item 402(x) of Regulation S-K

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Item 402(x) of Regulation S-K, introduced by the U.S. Securities and Exchange Commission (SEC) on Dec. 14, 2022, and effective for 2024 proxy statements, requires that public companies disclose detailed information about...more

DLA Piper

Tax Considerations for Public Company Equity Incentive Awards

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This is the third part of a series covering certain securities law, corporate governance, and tax considerations related to stock options and restricted stock unit (RSU) awards granted by public companies....more

BCLP

Key Points From BCLP's Recent Public Company Update Program

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BCLP hosted its annual CLE event, "Public Company Update and Other Trending Topics,” in St. Louis recently. Some of the key issues covered by the event, along with some takeaway considerations for companies, include the...more

Cooley LLP

What to Know Before Acquihiring a Team

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Growing companies will often use acquihires to bring in a team of new employees. This can be more efficient and effective than hiring one by one, especially if the team being brought aboard works well together and has...more

Katten Muchin Rosenman LLP

Reminder for Public Companies Granting Stock Options and Stock Appreciation Rights: Don't Forget New Item 402(x) Disclosure

As public company issuers prepare for the 2025 reporting season, issuers should be reminded (or made aware) of the new executive compensation-related disclosure requirements. On December 14, 2022, the Securities and Exchange...more

Fenwick & West LLP

BlackRock’s 2025 U.S. Proxy Voting Guidelines

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In December 2024, BlackRock released its updated U.S. proxy voting guidelines for benchmark policies. The changes will become effective as of January 2025. ...more

BCLP

Are Your Equity Grant Practices Ready for SEC Disclosure and Accounting Requirements?

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New SEC disclosure requirements take effect soon.  Together with recent accounting guidance, it’s timely for companies to review their equity grant practices and any vulnerabilities to criticism for “spring-loading” or...more

Latham & Watkins LLP

Paying the Premium: An Alternate Approach to Repricing Underwater Options - February 2024

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Can we keep our heads (and options) above water? As we enter the middle of the first quarter of 2024, many management teams and boards are still asking themselves this question. Volatility in equity markets has, for many...more

Farrell Fritz, P.C.

Out of Control! What the Elon Musk Compensation Case Reminds Us about Transactions with Controlling Stockholders

Farrell Fritz, P.C. on

Process still matters.  That’s the main takeaway from the Delaware Court of Chancery’s 200-page opinion striking down Tesla’s 2018 incentive package awarded to Elon Musk.  The court rescinded the incentive package mainly...more

WilmerHale

Repricing Options: What Every Private Company Needs to Know

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Stock options are typically a critical component of a private company’s ability to recruit, incentivize and retain key talent. Particularly for early-stage companies, rewarding equity packages can help make up for the gap...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Staff Issues Guidance on Recent Rule 10b5-1 Amendments and Related Disclosure Requirements

On August 25, 2023, the staff of the U.S. Securities and Exchange Commission’s (SEC’s) Division of Corporation Finance issued guidance to address certain open questions on the amendments to Rule 10b5-1 and related disclosure...more

WilmerHale

Commonly Considered Option Program Enhancements: Part III - Granting Options with Extended Post-Termination Exercise Periods

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In this four-part series, we explore several of the most commonly-considered option program enhancements emerging companies may consider as they strive to make their stock option programs as compelling as possible to recruit...more

WilmerHale

Preparing for New Issuer Repurchase Disclosures

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In May 2023, the Securities and Exchange Commission (SEC) amended its rules to significantly increase the disclosures public companies must make about repurchases of their equity securities. The recent amendments are the...more

Keating Muething & Klekamp PLL

SEC Adopts Amendments Requiring Disclosure of Issuer Share Repurchases

On May 3, 2023, the Securities and Exchange Commission adopted amendments to Item 703 of Regulation S-K which were proposed in December 2021 as part of the SEC’s goal of “improving the quality, relevance and timeliness” of...more

Goodwin

Key Compensation Considerations for Public Companies in a Market Downturn

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As a result of recent market trends, US public companies and their compensation committees face challenging decisions as they seek to maximize shareholder value while retaining and competitively incentivizing key employees....more

Goodwin

Public Companies: Time to Consider Repricing Underwater Stock Options?

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​​​​​​​Given the recent volatility in the national markets, the stock prices of many publicly-traded companies have declined significantly, resulting in an increasing number of service providers holding underwater stock...more

Latham & Watkins LLP

Amendments to Listing Rules Relating to Share Schemes of Hong Kong Listed Issuers

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The requirements under Chapter 17 of the Listing Rules applicable to share option schemes will also govern share award schemes under the amendments that will become effective 1 January 2023. Both share option schemes...more

Snell & Wilmer

Time to Consider Option Repricings?

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Given recent declines in equity value in a variety of segments of the economy (technology in particular), a number of clients have asked us what levers are available for retaining talent. While they are rare and while we...more

Womble Bond Dickinson

SEC Proposes New Rules for Share Repurchases and Rule 10b5-1 and Insider Trading Matters

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On December 15, the SEC proposed rules to address two stated priorities for the agency under Chair Gary Gensler: modernizing disclosure of share repurchases and curbing perceived abuses around Rule 10b5-1 and insider trading....more

WilmerHale

SEC Adopts SAB 120 to Address Spring-Loaded Compensation Awards

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Last week, the SEC announced the adoption of Staff Accounting Bulletin No. 120 (SAB 120), which provides guidance for companies as to how they should recognize and disclose the cost of providing “spring-loaded” awards to...more

Allen Matkins

Can A Corporation Issue Shares That Are Convertible At Its Own Option?

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May a California corporation issue shares that are convertible ex proprio motu into shares of any other class or series or any other of its securities?  The answer is "yes" but only if that right is provided in the articles...more

BCLP

Don’t Forget! Refresher on Glass Lewis COVID-19-Related Guidance and ISS Compensation-Related FAQs

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For companies knee deep in proxy statement drafting and 2021 executive compensation decisions, we recommend a quick refresher on Glass Lewis’ December 2020 Approach to Executive Compensation in the Context of the COVID-19...more

Allen Matkins

In This Case, A Wrongful Termination Does Not Render Repurchase Wrongful

Allen Matkins on

Shareholders' agreements in closely held corporations frequently grant the corporation and/or the other shareholders the right to repurchase a shareholder's shares if the shareholder ceases to be an employee of the company. ...more

Farrell Fritz, P.C.

Restoring Incentives of Underwater Stock Options

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COVID-19 induced declines in private and public company valuations have left many employee stock options “underwater” or “out-of-the-money”, i.e., exercise prices exceeding fair market value. This is a problem for employees...more

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