News & Analysis as of

Equity Compensation Executive Compensation

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

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

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

Lowenstein Sandler LLP

How the Structure of Your M&A May Impact Your Workforce

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On the latest episode of Just Compensation, Lowenstein’s Darren Goodman, Megan Monson, and Jessica Kriegsfeld of the Executive Compensation, Employment and Benefits practice discuss how the structure of an M&A transaction...more

Opportune LLP

Total Shareholder Return Plans: Accounting Implications & Valuation Assumptions

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In a competitive talent market, companies are reevaluating executive compensation packages to attract and retain top leadership. Compensation generally includes a base level of compensation combined with some form of...more

FordHarrison

[Webinar] Chevron Deference Overruled by SCOTUS: Understanding the Potential Legal Implications - July 30th, 1:00 pm - 2:00 pm ET

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On June 28, 2024, in an anticipated but significant decision, the Supreme Court of the United States overruled Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), which required courts to...more

Holland & Hart - The Benefits Dial

Sweet Child O’Mine – Business Transition with Benefits

Owners of closely held businesses, particularly first-generation owners, often have a difficult time finding a suitable succession plan. These owners are faced not only with phasing out of their labor of love, but choosing a...more

Lowenstein Sandler LLP

The ABCs of LLC Equity Compensation

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On this episode of “Just Compensation,” Darren Goodman, Sophia Mokotoff, and Taryn E. Cannataro discuss equity compensation that can be issued by partnerships, with a special focus on profits interests. Profits interests are...more

Lowenstein Sandler LLP

The ABCs of Stock Options and Other Equity Awards: Which One Works Best for You?

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Today on “Just Compensation,” Darren Goodman and Taryn Cannataro of Lowenstein’s Executive Compensation & Employee Benefits Group speak with Tax partner Sophia Mokotoff about the various types of equity awards that can be...more

Jones Day

Delaware Court Applies Traditional Entire Fairness Standard to Very Large Stockholder-Approved, Performance-Based Equity Award

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The Case: A Tesla stockholder sued Tesla's board of directors to rescind a performance-based stock option grant awarded to Elon Musk, Tesla's CEO. The option award was worth a total of $56 billion and offered the opportunity...more

BCLP

Tesla’s Super-charged Equity Award to Elon Musk Unplugged by Delaware Court Cautionary Tale for Boards and Executives

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The Delaware Chancery Court invalidated a substantial equity award to Elon Musk – the largest in history. It applied the entire fairness test instead of the more deferential business judgment rule, finding that Musk...more

Troutman Pepper

Equity Award Delegations for Publicly Traded Companies — The Consumer Finance Podcast

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Please join Troutman Pepper Partners Chris Willis and Sheri Adler as they discuss recent developments in equity award delegations for public companies incorporated in Delaware. Sheri, a member of our Employee Benefits and...more

Lowenstein Sandler LLP

The Impact of 457A on Deferred Compensation from non-US Entities

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Today on “Just Compensation,” Darren Goodman, Megan Monson, and Taryn E. Cannataro of Lowenstein's Employee Benefits & Executive Compensation group are joined by Sophia Mokotoff, partner in the firm’s Tax group, to discuss...more

WilmerHale

“Computed Without Regard to Taxes Paid”: The Individual Tax Consequences of Compensation Clawbacks

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Compensation clawbacks can raise difficult, and often adverse, tax issues for employees and other service providers. Specifically, for clawbacks that are effected on a gross (pretax) basis, questions arise as to how the...more

Dorsey & Whitney LLP

Canadian Compensation Arrangements - When Do I Need U.S. Counsel?

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Imagine a Canadian company adopts a deferred share unit plan (DSU Plan) for its directors.  At the time the plan is adopted, the company does not have the plan reviewed by U.S. counsel, because none of their directors reside...more

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - Using Equity Incentives to Attract and Retain Key Team Members

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On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt is joined by his colleague, Nona Massengill, a partner who focuses her practice on executive compensation matters. Nona shares insight on how...more

Morgan Lewis

Beijing Appellate Court Sheds Light on Nature of Equity Incentive Disputes

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A Beijing appellate court has expressed its view that a multinational employer’s equity plan for its employees constitutes an employment dispute, which would render it subject to Chinese law. This is the opposite position...more

Skadden, Arps, Slate, Meagher & Flom LLP

2023 Compensation Committee Handbook

Overview of Committee Member Responsibilities - Compensation committee (Committee) members’ duties and responsibilities generally are outlined in the Committee’s organizational charter approved by the board of directors...more

Miller Nash LLP

Tech Layoffs Give Employers and Employees Important Reminder to Review Equity Compensation Terms

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The end of 2022 and the beginning of 2023 have been filled with news of tech layoffs, including the notable FAANG companies (Meta, Apple, Amazon, Netflix, Alphabet) and smaller, privately held companies. The cause of these...more

Williams Mullen

[Webinar] Winter Tax Forum - January 19th, 9:00 am - 10:00 am ET

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We hope you can join us for our Winter Tax Forum on Thursday, January 19, 2023. Employee benefits and executive compensation partner Nona Massengill will provide an overview of the tax issues that impact equity...more

Latham & Watkins LLP

Worker Windfalls Bring Benefits for PE

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Sponsors are likely to explore share-based schemes and other plans to incentivise non-managerial staff. Incentivising management with sweet equity and co-investment opportunities is a tried and tested strategy for buyout...more

Morgan Lewis - ML Benefits

Ready for a Sale? Part 2: Change in Control Provisions and Treatment of Outstanding Equity Compensation

This blog post is Part 2 in the “Ready for a Sale?” series, which is aimed at getting the human resources, benefits, and executive compensation functions of your organization ready for a potential sale or similar corporate...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

BCLP

SEC Tightens Accounting for “Spring-Loaded” Equity Awards

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Spring-loading - awarding equity awards before announcing material good news - was in the headlines 15 years ago but still surfaces on occasion, notably when in July 2020 Kodak made large grants to executives the day before a...more

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