News & Analysis as of

Equity Compensation

DarrowEverett LLP

Massachusetts Court Decision Could Spark State Tax Crackdown Nationwide

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Founders and executives with equity compensation need to be prepared for state tax exposure, even in states where they do not live. In a landmark decision that reverberates beyond Massachusetts, the Massachusetts Appeals...more

Amundsen Davis LLC

[Webinar] Breakfast Briefing: Beyond Sweat Equity: Modern Compensation Strategies for Enhanced Engagement & Retention - April...

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In today’s competitive talent marketplace, traditional compensation models alone are no longer enough to attract and retain top performers. Join us for “Beyond Sweat Equity: Modern Compensation Strategies for Enhanced...more

Latham & Watkins LLP

The LathamTECH Podcast — Can RSUs Unlock Employee Equity?

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The trend of RSU (Restricted Stock Units) participation in secondary markets is transforming how private tech companies manage employee equity. As companies remain private for longer, the need for employee liquidity options...more

Allen Matkins

Court Rules Compensation Package Offer Is Not A Security

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The definition of a "security" Section 25019 was modeled after the definition in Section 2(a)(1) of the Securities Act of 1933, albeit with some notable differences.  Both laws broadly define the term and therefore cover a...more

Goodwin

Thinking Outside the Buyout: Four Factors Management Teams Need to Get Right

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Management teams of companies acquired by private equity (PE) firms often find themselves in a unique position. For a time, they are both selling owners and operators who will continue to run the business after the sale....more

Williams Mullen

[Webinar] M&A Series: Pre-Exit Housekeeping for Emerging Companies - March 20th, 11:00 am - 11:15 am EDT

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Please join Williams Mullen attorneys David Lay and Cathy Zhang as they discuss common M&A diligence issues that emerging companies should review before pursuing an exit....more

Skadden, Arps, Slate, Meagher & Flom LLP

2025 Annual Meeting Filing and Disclosure Reminders

When finalizing proxy materials for annual shareholder meetings, we recommend that companies consider the recent changes to proxy disclosure requirements and other disclosure trends summarized in our December 11, 2024, client...more

DarrowEverett LLP

Private Equity Incentive Structures: What Management Needs to Know

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If a private equity buyer is exploring an acquisition of the company you manage, and you anticipate remaining involved in the business after the sale, there are a number of options that may be appealing to you. It is likely...more

Barnea Jaffa Lande & Co.

Phantom Stock: A Strategic Tool for Equity Incentivization

In the contemporary landscape of talent management, organizations face major challenges in recruiting and retaining top-tier professionals. Equity incentive mechanisms have emerged as a sophisticated strategy to cultivate...more

BCLP

Don’t Forget Accounting Rules When Accelerating Vesting of Stock-Based Awards

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Last month, the SEC settled charges against Celsius Holdings, Inc. for allegedly improper accounting when it modified equity compensation awards for six departing employees and retiring directors. The errors caused allegedly...more

DLA Piper

What's New in 2025 for Global Equity Plans

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As we settle into 2025, companies granting equity compensation awards to their employees around the world are encouraged to monitor developments that affect compliance and administration across different jurisdictions. ...more

Cooley LLP

Early Lock-Up Releases: Overview and Trends

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Lock-up agreements prohibit company insiders (founders, directors, executive officers and major stockholders) and other pre-IPO stockholders from selling their shares for a period of time after an offering. Lock-ups are...more

Wilson Sonsini Goodrich & Rosati

Action Required: Share Transfers Pursuant to ISO Exercises and ESPP Purchases

Companies frequently grant incentive stock options (ISOs) or sponsor an employee stock purchase plan (ESPP) to provide tax-advantaged equity incentives to employees that are U.S. taxpayers. One aspect of the tax-advantaged...more

Proskauer - Employee Benefits & Executive...

ISS and Glass Lewis Announce Compensation-Related Updates For 2025 Proxy Season

Recently, Institutional Shareholder Services (“ISS”) released updates to its voting policies for 2025, including new and updated responses to its Compensation Policies FAQs and new Value-Adjusted Burn Rate Benchmarks (based...more

Perkins Coie

BlackRock’s US Proxy Voting Guidelines Updates

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BlackRock recently published its updated “Proxy Voting Guidelines for Benchmark Policies - U.S. Securities” for the 2025 proxy season, along with its 2025 “Global Principles for Benchmark Policies” and “Engagement Priorities...more

Skadden, Arps, Slate, Meagher & Flom LLP

ISS Issues Updated FAQs on US Executive Compensation Policies for 2025

On December 13, 2024, Institutional Shareholder Services (ISS) issued updated Frequently Asked Questions (FAQ) related to its U.S. Executive Compensation Policies effective for shareholder meetings occurring on or after...more

DLA Piper

Employers: 2025 Deadlines Approach to Furnish Incentive Stock Option and Employee Stock Purchase Plan Information Statements and...

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Section 6039 of the Internal Revenue Code (Code) requires a corporation to furnish a written statement to any employee or former employee who either (i) exercised an incentive stock option within the meaning of Section 422 of...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

Goodwin

A New Form Section 83(b) Election: IRS Form 15620

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As part of US tax planning for founders, employees, board members, and other individual service providers who receive equity that is subject to vesting in connection with their services, Section 83(b) elections are frequently...more

Williams Mullen

Annual Employee Benefits Compliance Checklists - Corporate Counsel

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The following checklist highlights key issues for corporate counsel with respect to employee benefit plans and executive compensation arrangements....more

Goodwin

Trends in Equity Repurchasing in PE: Rollover vs. Incentive Equity

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Private equity (PE) sponsors often provide incentives to founders, equity holders, employees, directors, and officers of portfolio companies in the form of rollover equity or incentive equity to align their interests with...more

Barnea Jaffa Lande & Co.

Changes to Israeli Income Tax on Employee Equity

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On September 17, an amendment to the Income Tax Rules (Relief in Issuance of Shares to Employees) was officially published, approximately 20 years from the last amendment. The amendment will enter into force on January 1,...more

Lowenstein Sandler LLP

Equity Incentive Plan Considerations for Public Companies

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On this episode of “Just Compensation,” Andrew Graw, Megan Monson, and Jessica I. Kriegsfeld talk about equity plan considerations for public companies. They address various drafting considerations that are specific to public...more

Goodwin

Stretching and Flexing - Part Two: Keeping the Management Team Incentivised for the Longer Journey

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Parties facing these issues often propose a MIP reset to realign management’s interests with those of the original (and, if applicable, new) sponsor until the eventual full exit. MIP resets have long been used to rescue...more

Troutman Pepper Locke

Current Executive Compensation Trends in Private Equity Transactions — Troutman Pepper Podcast

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In this installment of our Employee Benefits and Executive Compensation Considerations in Mergers and Acquisitions podcast series, Troutman Pepper Partners Joshua Gelfand and Michael Crumbock discuss current executive...more

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