News & Analysis as of

Equity Compensation

Epstein Becker & Green

SEC Issues New Guidance Under Rule 701 for Employee Equity Compensation

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On March 6, 2026, the Division of Corporation Finance at the Securities and Exchange Commission (SEC) issued new and updated Compliance and Disclosure Interpretations (CDIs) for private and foreign companies issuing equity...more

Ropes & Gray LLP

SEC Staff Updates Guidance on Rule 701 Offering Exemption, Ineligible Issuer Status, and Smaller Reporting Company Status

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On March 6, 2026, the staff of the SEC’s Division of Corporation Finance issued new and revised Compliance & Disclosure Interpretations (C&DIs) primarily addressing (i) exemptions for offers and sales of securities pursuant...more

Fisher Phillips

Tech Sector Guide to Stock Options: Compliance, Tax, and Strategic Planning Considerations for Company Leaders

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Stock options are a valuable compensation tool in the tech sector because they can help attract talent when cash is limited, ensure incentives are tied to long-term company growth, and retain employees through time-based...more

Morgan Lewis

BFH Further Clarifies Its Case Law on Tax Classification of Ongoing Payments from Employee Participation Programs

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In two recently published rulings, the German Federal Fiscal Court (BFH) has clarified its case law on ongoing payments from employee participation programs, thereby creating further legal certainty with regard to the...more

Cooley LLP

UPDATED: US Congress Eliminates Foreign Private Issuer Exemption for Insider Reporting Obligations Under Holding Foreign Insiders...

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On February 27, 2026, the US Securities and Exchange Commission (SEC) adopted final amendments to its rules and forms to reflect the disclosure requirements of the Holding Foreign Insiders Accountable Act, which was signed...more

Bass, Berry & Sims PLC

Delaware Supreme Court Reverses Court of Chancery, Affirming that Forfeited Equity Remains Valid Consideration for Non-Competes

On February 3, the Delaware Supreme Court issued a critical decision for private equity (PE) sponsors and institutional employers in North American Fire Ultimate Holdings LP v. Doorly....more

Haynes Boone

Key ISS and Glass Lewis Updates for 2026 Proxy Season

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ISS and Glass Lewis’s 2026 updates to their U.S. proxy voting guidelines apply to shareholder meetings held on or after February 1, 2026....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

A&O Shearman

Delaware Supreme Court Finds Attorneys' Fee Award Excessive In Excessive Compensation Case

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On January 30, 2026, the Delaware Supreme Court, sitting en banc, affirmed a settlement resolving excess compensation claims against non-employee director defendants but reversed and modified the portion of the settlement...more

Seyfarth Shaw LLP

Almost 20 Years of Section 409A: Is Your Documentation Still in Sync?

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It has been nearly 20 years since Internal Revenue Code Section 409A transformed the rules governing nonqualified deferred compensation (NQDC). Many employers updated written plan documents by the 2008 deadline—and haven’t...more

Proskauer - Employee Benefits & Executive...

ISS and Glass Lewis Release Compensation-Related Updates For 2026 Proxy Season

As part of their annual policy review cycles, Institutional Shareholder Services (“ISS”) and Glass Lewis & Co. (“Glass Lewis”) have released their compensation-related voting policy updates that will apply starting with the...more

Cadwalader, Wickersham & Taft LLP

Delaware Supreme Court Rejects Total Rescission of Musk Pay

On December 19, 2025, the Delaware Supreme Court overturned the rescission of Elon Musk’s 2018 Tesla compensation grant and instead awarded nominal damages and substantially reduced attorneys’ fees. The case stemmed from a...more

Polsinelli

Shelf Space: The CPG Advisor Conundrum: Great Fit, Wrong Expectations

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It sounds simple enough: a CPG (consumer packaged goods) startup wants to grow its retail footprint, and engaging an industry advisor seems like the answer. And the founder thinks they’ve identified just the right advisor for...more

Cooley LLP

ISS Updates Its FAQs to Align With ‘26 Proxy Guidelines

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Last month, I blogged several times about what ISS changed in its proxy voting guidelines for this proxy season. Now, ISS has updated its three sets of FAQs – consisting of Non-Compensation FAQs; Executive Compensation FAQs;...more

Lowenstein Sandler LLP

Your Options Have Options: Assessing Treatments of Outstanding Stock Options and Other Equity Awards

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In this episode of Just Compensation, Megan Monson and Jessica I. Stewart join host Taryn E. Cannataro in discussing common treatments of outstanding stock options and other equity awards in transactions. The discussion...more

Stikeman Elliott LLP

ISS and Glass Lewis 2026 Canadian Policy Updates

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Institutional Shareholder Services (“ISS”) and Glass Lewis have published their Canadian benchmark policy guidelines for the 2026 proxy season. This year’s updates include clarifying changes to ISS’ guidelines relating to...more

Morrison & Foerster LLP

Early Exercise of ISOs – Why It Doesn’t Work

“Early exercising” refers to exercising a stock option before it has fully vested, so you own the shares sooner (although they remain subject to the same vesting conditions as the stock option). For non-qualified stock...more

McDermott Will & Schulte

Global equity plan reporting obligations for calendar-year 2026: Part one

Global equity plans are complex, and their administration requires collaboration across multiple departments, including legal, human resources, payroll, and tax....more

Goodwin

Unlocking the UPREIT Structure: A Comprehensive Guide to LTIP Units as Currency for Incentive Equity Awards

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The umbrella partnership real estate investment trust (“UPREIT”) structure, a cornerstone of the modern REIT industry, provides REITs with powerful tools for both property acquisitions and executive compensation. ...more

Pillsbury - Propel

USPS Postmark Rule Change: Implications for Section 83(b) Elections

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For startup founders seeking to reduce their potential tax exposure through a Section 83(b) election, timing matters. ...more

McDermott Will & Schulte

New year, new rules: Global equity and employment law considerations for calendar year 2026

In 2025, many countries finalized regulations and released new guidance regarding global equity plans. Multinational companies should confirm whether their equity grant materials and plan administration align with such...more

Haynes Boone

Reminder of Annual Reporting and IRS Filings for ISO Exercises and ESPP Stock Transfers

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Employers sponsoring equity incentive plans or tax-qualified employee stock purchase plans (“ESPP”) must fulfill certain year-end information reporting requirements under Section 6039 of the Code with respect to company stock...more

Katten Muchin Rosenman LLP

Delaware Supreme Court Restores Tesla’s 2018 Performance-Based Equity Award to Elon Musk

On December 19, 2025, the Delaware Supreme Court reversed the Court of Chancery’s decision rescinding Elon Musk’s 2018 Tesla compensation package, thereby restoring to Musk an award that is now worth more than $100 billion....more

Fisher Phillips

Top 2026 Predictions for the Tech Sector

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Our Tech Sector thought leaders have pulled together their top predictions for the new year so that employers can get a running start to 2026....more

Bressler, Amery & Ross, P.C.

Maximizing Benefits When Corporate Employees Receive Equity for Services

Employees frequently receive compensation in forms other than salary, commissions, or bonuses. Employers may instead offer equity in the company at which the employee works....more

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