Notable Developments as of 2019.06.10
2019.05.23 Golf - Honorable Even in Severance. The USGA recently announced the need to downsize its workforce. Not surprisingly, the USGA's approach has class. Its offer of sweetened severance to those who volunteer to retire builds on a smart employer strategy . . . continued at Two-Step RIFs.
2019.05.22 An Ounce of Litigation Prevention for Executive Benefits … and Severance: Lessons from an Employer’s Quagmire in New Jersey. There are three instructive takeaways from a recent case in which an employer failed in its effort to end the case before significant discovery and expense would result. Worse for the employer: the litigation arose after the executive had terminated employment, collected severance, and signed a general release of claims. So what went wrong? See Severance Litigation.
2019.05.06 Director Compensation - ISS Data and Commentary. This Harvard Governance Blog shares excellent analytics published by Institutional Shareholder Services. Corporate boards would be smart to pay attention because their own compensation continues to present the #1 risk of shareholder derivative litigation. See Director Comp. Litigation and Survey Data.
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.
2019.04.16 ISS Report: Executive Compensation Trends 2019. In its recent report, ISS presents significant survey data based on 2019 proxy statements by more than two-thirds of S&P 500 companies and approximately half of Russell 3000 companies. For instance, ISS reports that ... continued at Executive Compensation Surveys.
2019.03.22 Private Equity Firm Sued for Portfolio Co.'s Withdrawal Liability. The Sun Capital case and its progeny should remain red flags for private equity firms. Case in point: the Teamsters just filed a complaint seeking $1.4 million in withdrawal liability from a PE firm due to ... continued at ERISA Controlled Group Liability.
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:
|Executive Compensation||Loyalty||Business Issues|
Restrictive Covenants (state-by-state guide)
Shareholder Litigation (vs corp directors)
NEW: for executives who may be leaving a position or starting a new one, see this site.
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