News & Analysis as of

Employee Incentive Plans

Morrison & Foerster LLP

From Tokens to Equity: A Playbook for the Pivot

Your token worked. It drove adoption, aligned incentives, and created real value. But now the business has evolved. You’ve developed an asset that may be as important, if not more important, than the token itself. And the...more

McDonald Hopkins

The PropCo/OpCo divide in skilled nursing and assisted living: Why owners are turning to ESOPs

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Skilled nursing facilities and assisted living communities are typically structured under a Property Company/Operating Company model, commonly known as PropCo/OpCo, which separates the real estate from day-to-day healthcare...more

A&O Shearman

Delaware Supreme Court Holds Restrictive Covenants Still Enforceable After Stock Unit Consideration Forfeited

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On February 3, 2026, the Delaware Supreme Court, sitting en banc, reversed a decision from the Delaware Court of Chancery that had dismissed claims for breach of restrictive covenants and breach of the implied covenant of...more

BCLP

Unlocking Ownership: How Recent Reforms are Reshaping Employee Share Incentives

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The landscape for employee share incentives in the UK has shifted meaningfully in recent months, and for private company owners and their advisers, in particular, the timing has rarely been better to take a fresh look at...more

Orrick, Herrington & Sutcliffe LLP

Equity Vesting for Startups: What founders and employees need to know

Nick Feldman and Cody Peterson, partners in Orrick's Technology Companies Group, demystify equity vesting for startup founders and employees. Learn: What vesting means for both stock and options – and how it ties to time...more

Lowenstein Sandler LLP

Commission Basics: Key Considerations for Commission Plans

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In this episode of Just Compensation, Megan Monson and Amy C. Schwind discuss legal considerations regarding commission payment, covering the key components of commission plans. They advise against ambiguity in plans by...more

Cooley LLP

Preparing for an Equity Plan Proposal at the 2026 Annual Meeting

Cooley LLP on

As proxy season kicks off in earnest, we’ve reached the time of year when public companies should evaluate whether additional equity plan shares will be needed during the next 12 to 16 months – i.e., to meet any immediate...more

Morrison & Foerster LLP

Delaware Supreme Court Reverses Doorly, Reaffirming Equity as Valid Consideration

On February 3, 2026, the Delaware Supreme Court reversed the Delaware Court of Chancery’s decision in North American Fire Ultimate Holdings LP v. Doorly, restoring a more traditional and predictable approach to evaluating...more

Seyfarth Shaw LLP

Amendments to New York “Trapped at Work Act” Pass Legislature

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The bill amending New York’s Trapped at Work Act (“Act”) has now passed both chambers of the New York State Legislature. When Governor Hochul signs the legislation, as expected, various clarifications will become law, and...more

Bradley Arant Boult Cummings LLP

Leveling Up in the New Year: Three Resolutions to Guide Majority Owners and Their Companies to Excellence in 2026

Doing the same thing generally produces the same result, and as the new year arrives, many business owners are considering new steps to help their companies achieve greater success in the year ahead....more

Venable LLP

Retention Bonuses Are Not Wages Under Massachusetts Law

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In a victory for employers, the Massachusetts Supreme Judicial Court (SJC) recently held that retention bonuses are not considered wages under the Massachusetts Wage Act and are not required to be paid to employees on the...more

Orrick, Herrington & Sutcliffe LLP

UK Autumn Budget 2025: EMI Reform Announced

UK Chancellor Rachel Reeves has announced that qualification criteria for enterprise management incentive (EMI) options will be “widened”. While legislation has not yet been published, HMRC published a Policy Paper late last...more

Sheppard, Mullin, Richter & Hampton LLP

Delaware Courts Limit Noncompete Enforcement in Incentive Plans

As previously reported, courts in Delaware, the once favored “employer-friendly” jurisdiction, have increasingly scrutinized and refused to enforce noncompete agreements. In recent cases, Delaware courts have continued this...more

Cole Schotz

Equity Grants & Start Ups

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The following is an excerpt from The Start-Ups & Emerging Companies Guidebook, a preliminary discussion on best practices and strategies for start-ups and emerging companies to easily leverage. You have a great idea for a new...more

Lowenstein Sandler LLP

California Employers Must Imminently Revisit Their Approach to Signing Bonuses, Relocation Agreements, and Comparable Arrangements

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As a result of a new law effective January 1, 2026, California employers will be required to revisit their approach to agreements in which workers are required to repay relocation or signing bonuses, relocation expenses,...more

Levenfeld Pearlstein, LLC

Is an ESOP the Right Exit Strategy? A Closer Look at Employee Ownership Transitions

As succession planning becomes a more pressing concern for closely held businesses, Employee Stock Ownership Plans (ESOPs) are increasingly part of the conversation. While not the right fit for every company, ESOPs offer a...more

Jackson Lewis P.C.

How Financial Services and Credit Unions Can Navigate Risks When Structuring Employee Bonus Plans

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Bonus plans are a cornerstone of total compensation and help retain top talent and drive productivity in the financial services industry. By linking bonuses directly to measurable goals such as growth, production, and...more

White & Case LLP

Incentivizing Compliance and Disincentivizing Non-compliance

White & Case LLP on

The relationship between employee compensation, recognition, and an organization's culture of compliance is increasingly under scrutiny. Regulators, stakeholders and boards are recognizing that how employees are paid,...more

Constangy, Brooks, Smith & Prophete, LLP

MA Wage Act doesn’t cover profit-based incentive pay, judge rules

A recent decision from a federal court in Massachusetts reinforces the narrow scope of the Massachusetts Wage Act as it applies to incentive pay. In Noreke v. Gideon Taylor Consulting, LLC, decided August 14, the court...more

Fenwick & West LLP

What is "Dead Equity"?

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How do you incentivize new investors and executives to help grow your company when 70% of your cap table is on vacation in the Bahamas? (You probably can’t.) Learn how to avoid the “dead equity” pit trap—whether you’re...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

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In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Troutman Pepper Locke

Should I Remain Employed by the Debtor? What to Know About KEIPs and KERPs - Creditor’s Rights Toolkit

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For a debtor in financial distress, having the right team in place to steward the company through a restructuring can mean the difference between success and failure. To incentivize top talent to stay with the debtor and...more

Morgan Lewis - Tech & Sourcing

Personnel Considerations in Outsourcing Transactions

Each outsourcing transaction has its own unique characteristics and business drivers and, therefore, will include its own deal-specific terms. A key initial consideration to think about when beginning an outsourcing...more

Bradley Arant Boult Cummings LLP

Majority Owners Achieving Balance: Incentivizing Employees Without Giving Up the Keys to the Whole Kingdom

Success is not just an elusive goal – it can also be difficult to maintain once achieved. For majority owners in private companies, achieving success is just the first hurdle, because once they arrive at this pinnacle, they...more

Mayer Brown

The OPEN Initiative: an Employment Lawyer's Perspective on Diversity, Equity & Inclusion

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In this episode of OPEN Talks, our diversity, equity and inclusion podcast series, we swap perspectives, with Miriam Bruce, Partner in the London Employment Group, interviewing Louise Fernandes-Owen, Global Knowledge Counsel...more

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