Incentive Compensation

News & Analysis as of

Having Employees Sign Non-Compete Agreements After They Have Already Started Working Could Be A Big Problem For Some Employers

A non-compete agreement is a vital tool that companies use to protect their confidential and trade secret information and their customer and employee relationships. Employers, of course, want to avoid the trouble of running...more

Using Non-Competes When Greater Employee Responsibility = Greater Protectable Interest

Many employers require new hires to sign non-compete agreements and we have advised previously about best practices for employers to refresh their non-compete terms on a regular basis. A recent decision by a Maryland federal...more

Proposed Ban on Non-Competes in Massachusetts

Proposed legislation introduced by Governor Patrick to eliminate most forms of non-competition agreement in Massachusetts may be enacted before July 31, 2014. This legislation creates significant risks for employers with...more

Prepare to Attract Rock Stars from Day One: A Framework for Considering Equity Compensation in the C-Suite

As your company grows, you may reach a point when you want to bring in big talent, whether it be a new CFO, Director of Marketing, or someone to take your brand into a new space. Many of these so-called “rock stars” may be...more

Guidance On Employer Incentives For Wellness Participation Is On The Way, Says EEOC

Hallelujah! The Equal Employment Opportunity Commission announced this week that it plans to issue guidance on employers’ ability to offer incentives to employees based on their participation in wellness programs, or whether...more

Survey of Current Benefits Issues

In This Presentation: - Affordable Care Act - Affordable Care Act: Fees and Taxes 2015 – Employer Shared Responsibility Fee - Forms for Reporting Fees - Retirement Plan Errors - Overview - Retirement Plan...more

FINRA Requests Comment on the Effectiveness and Efficiency of its Rules on Gifts and Gratuities and Non-Cash Compensation and its...

As part of an assessment of selected rules and related administrative processes, FINRA has issued Regulatory Notice14-15 and Regulatory Notice14-14 seeking public comment on the effectiveness and efficiency of its (a) Gifts...more

Muddy employee incentive issues in a disappointing exit: 9 practical tips for public company acquirers

In mediocre payout situations, transaction proceeds are unlikely to give a substantial (if any) return to common stockholders, yet may be sufficient to at least return the initial investment, and perhaps a liquidation...more

Brownstein Trial Victory Provides Executive Compensation Plan Guidance

Brownstein Hyatt Farber Schreck attorneys and their client recently scored another trial victory. The outcome provides lessons for Brownstein’s clients that utilize variable compensation plans for their...more

Court Upholds Forum Selection Clause Over Plaintiff's Claims of Inconvenience and Expense

A senior manager alleging claims against his former employer arising out of the early termination of an incentive plan will have to take his case abroad. In Wolf v. TBG Limited, C.A. No. 13-3315 (Jan. 28, 2014), the United...more

Finders Are Not Always Keepers!

Your good client, Avery Phillips, Chairman of the Board, calls you because he is considering engaging a friend, Tepper, to identify potential investors for his company. Phillips explains that Tepper has extensive business...more

Health Law Blog: Court's Decision Another Reminder to Hospitals To Use Caution in Calculating Physician Productivity Bonuses

November, a federal district court granted partial summary judgment for the Department of Justice in U.S. ex. Rel. Baklid-Kunz v. Halifax Medical Center, ruling that productivity bonuses paid to employed physicians violated...more

Contingencies on Employee Bonuses Delay Employer’s Tax Deduction According to IRS Chief Counsel Memo

An employer cannot deduct cash bonuses in the year in which its employees perform the services giving rise to the bonuses, but must wait until the following year when the bonuses are paid, under bonus plans with several...more

FRB Issues Guidance on Managing Third Party Service Providers Risks

The FRB issued guidance on managing outsourcing risks, intended to highlight the potential risks arising from the use of service providers, describe the components of an appropriate service provider risk management program,...more

CFPB Settles with Mortgage Company over Loan Originator Compensation Incentives

The CFPB announced a proposed consent order against a mortgage company and two of its senior officers, alleging that the mortgage company, through the actions of such officers, steered consumers into mortgages with higher...more

Executive Compensation Packages – Interview with David Lagasse, Member, Mintz Levin  [Video]

Attorney David Lagasse, Member of Mintz Levin's Employment, Labor & Benefits Practice, discusses the elements that both employers and senior executives should consider when negotiating a compensation package. ...more

Reminder: Check Compliance With Code Section 162(m) Requirements to Deduct Performance-Based Compensation

Compensation paid by a publicly traded company to its chief executive officer and its three other most highly compensated officers (other than its chief financial officer) is generally not deductible by the company to the...more

Further Down the Rabbit-Hole we go: California’s Troubling Treatment of Incentive-Based Compensation Systems

On July 17, 2013, the California Supreme Court denied review of the Second Appellate District’s decision in Gonzalez v. Downtown LA Motors, 2013 Cal. App. LEXIS 257 (Cal. App. 2d Dist. Mar. 6, 2013), which addressed...more

CFPB Commences Action For Violation Of Loan Originator Compensation Rules

The CFPB filed a complaint in federal district court against a Utah-based mortgage company, Castle & Cooke Mortgage LLC, and two of its officers for illegally giving bonuses to loan officers who steered consumers into...more

CFPB Sues Mortgage Company Over Alleged Loan Officer Compensation Practices

This afternoon, the CFPB released a complaint it filed today against a Utah-based mortgage company and two of its officers for giving bonuses to loan officers who allegedly steered consumers into mortgages with higher...more

The SEC Staff Permits Sponsors of Securities Trading Platforms to Receive Incentive Compensation

One of the goals of the JOBS Act was to encourage the development and use of platforms that permit accredited investors to invest in early stage and other private companies. The JOBS Act contains a provision that expressly...more

IRS Ruling Treats Certain 529 Account Incentive Payments as Reportable Income

The IRS recently issued a private letter ruling, PLR 201310043 (released on March 8, 2013), of interest to Section 529 plans and their program managers. The ruling relates to the tax treatment of incentive contributions to...more

Veterans Affairs Bans Incentive Compensation Based on Securing Student Enrollments or Financial Aid

This alert is designed to help educational institutions understand the new Improving Transparency of Education Opportunities for Veterans Act, which establishes a ban on incentive compensation based on success in securing...more

Equity Incentive Compensation in LLCs

In a recent post, I recommended that the typical startup should start as an LLC (limited liability company) and remain an LLC as long as possible. One ever-present challenge with LLCs is that most entrepreneurs (present...more

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