Notable Developments as of 2020.02.15

2020.01.127  Survey Data - From Severance to Other Forms of Executive Comp.  Not surprisingly, between 2x and 3x pay is the range for CEO severance in just over 80% of the top 200 public companies. Likewise, those multiples apply in 84% of the surveyed companies to ... continued at Severance Surveys See generally  Topical Index for Executive Comp. Survey Data.

2020.01.14  Executive Compensation Strategies for Volatile Economic Times. See this Law360 article for 8 planning alternatives that public and private companies should consider.

2020.01.01  Updated FAQs from ISS - re executive compensation. Found here. The changes are mainly technical. See this checklist of problematic practices drawn directly from ISS's FAQs.

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:

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