Notable Developments as of 2019.12.14
2019.12.14 Bonuses and Vesting - Good Faith and Fair Dealing. Principles of fairness generally entitle executives and other employees to collect bonuses and other performance-based compensation if applicable goals have been satisfied, as well as if . . . continued at Cash Bonus Litigation.
2019.12.12 Executive Plan Liability for Who Participates. Employers generally have broad discretion when selecting who participates, and how much they receive, in stock award plans, supplemental retirement plans (aka SERPs), and other non-qualified plans. There are limits, however, as illustrated by this New York decision holding a nonprofit organization liable to its CFO for denying ... continued at Executive Plan Litigation.
2019.11.22 Executive Employment Agreement Insights: From High Stakes to Competing Interests. This comprehensive article (featured in Law360) practically serves as a terms sheet in that it examines the material terms of executive-level employment agreements - with insights that contrast the perspectives of employers and executives. Part 1 covers compensation, benefits and noncompetes / Part 2covers severance scenarios, changes in control, taxes (409A and golden parachute) and dispute resolution.
2019.09.09 Executive Retention and Change in Control Planning. Before merger or sale negotiations begin, potential sellers (or targets!) should get their severance house in order. From survey data about change-in-control benefits, to springing rabbi trusts, to ERISA-fied plans, to post-closing administrative protections, see this M&A Precaution Checklist.
2019.04.18 Rabbi Trusts: When to Ask? What to Get? A recent Law360 headline brings rabbi trusts immediately to mind. It reads "Ex-Manufacturing Co. CEO Says He's Owed $4.4M in Benefits" (4/10/2019). See this webpage for a discussion of how a rabbi trust could have helped, and when the protections of a rabbi trust make sense for an executive to pursue.
2019.01.22 Tax-exempt Orgs: Watch your 457(f) Plan!!! If you have ever heard of golden parachutes, you likely think of change-in-control payments made by for-profit companies. Tax-exempt organizations had better pay attention to that term because they could trigger a 21% excise tax if . . . continued at 457(f) plans and Code Section 4960.
Notable Updates in 2019:
WARNING AND DISCLAIMER
This site provides general information for educational purposes, is not intended either to provide legal advice or to be relied upon in any way. There is no substitute for personal legal counsel about your particular situation. This site is not affiliated with any law firm, and merely provides the views of Mark Poerio in his individual capacity.
>>> See Disclaimer for all rules of usage for this site.
Copyright © Joseph Poerio. All rights reserved.