ExecutiveLoyalty.org

Notable Developments as of 2019.10.13


2019.10.13  SERP Basics and P4P (pay-for-performance).  This U.S. News article provides a good intro into supplemental executive retirement plans (aka SERPs), and aptly notes that they often work well for private companies that do not offer stock awards. The real art for SERPs comes, in my experience, from correlating executive benefits to corporate and other performance goals. That combo can provide a long term win-win for employers and executives. 


2019.10.08  Executive Employment Agreement Insights: From High Stakes to Competing Interests.  This comprehensive article 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. 


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.


2019.09.05  Severance Litigation: Precautions to Consider.  A recent 5th Circuit decision demonstrates why the precise drafting of severance-related agreements and plans is the surest step by which employers may avoid costly severance litigation. Two other employer precautions will also knockout gadfly claims for enhanced severance benefits.  Read more here


2019.09.03  Executive Compensation and Societal Good If you blinked during your summer vacation, you may have missed a corporate governance disruption coming from the Business Roundtable. For its announcement and the implications for executive compensation, see newly-created  Societal Good and Executive Compensation.


2019.08.26  Disclaimers of Coverage - Another Object Lesson.  Playing loose with insurance companies has an awful back-end risk, because premiums may be paid for years, and then coverage may be disclaimed if there were prior inaccuracies. The 8th Circuit just made such a ruling in ... continued at ERISA Litigation.


2019.08.14  Director Compensation Study - and Implications. Tucked within superb survey data about board service and pay practices, this Pearl Meyer's report makes an observation that should be a clarion call . . . continued at  Director Compensation Survey Data


2019.07.07  #MeTOO, CLAWBACKS AND EXECUTIVE COMPENSATION IN 2019. This 161-page PDF presents a substantively rich survey covering . . . continued atClawbacks.  

  • See also:  "Hitting Workplace Harassers Where It Hurts(National Law Journal, 12/30/2017, by Poerio et al) which addresses how employers who agree that bad acts should have bad consequences could revise their executive compensation structures to place more at risk. 


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 JerseyThere 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.


2019.04.18  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.

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Notable Updates in 2019:

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