News & Analysis as of

Incentive Compensation

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: Basics of Restricted Stock, Restricted Stock Units, and Performance...

Foley & Lardner LLP on

This article is the fourth in our series on equity-based compensation intended to assist employers with answering a common question: What type of equity compensation award is best for our company and our employees?...more

Goodwin

Stretching and Flexing - Part Two: Keeping the Management Team Incentivised for the Longer Journey

Goodwin on

Parties facing these issues often propose a MIP reset to realign management’s interests with those of the original (and, if applicable, new) sponsor until the eventual full exit. MIP resets have long been used to rescue...more

Cooley LLP

Are companies getting the clawback checkboxes right?

Cooley LLP on

As you know, in 2022, the SEC adopted a new clawback rule, Exchange Act Rule 10D-1, which directed the national securities exchanges to establish listing standards requiring listed issuers to adopt and comply with a clawback...more

Kohn, Kohn & Colapinto LLP

False Narratives Around False Whistleblower Reporting: Finding the 0.0027%

Critics of whistleblower award laws commonly claim that whistleblower awards will lead to frivolous and speculative complaints aimed at damaging the reputation of individuals or companies. However, a close look at the data...more

Cooley LLP

Do companies adopt clawback policies exceeding minimum SEC requirements?

Cooley LLP on

In 2022, after seven years of marinating on the SEC’s long-term agenda, the SEC adopted rules to implement Section 954 of Dodd-Frank, the clawback provision. The rules directed the national securities exchanges to establish...more

Opportune LLP

Total Shareholder Return Plans: Accounting Implications & Valuation Assumptions

Opportune LLP on

In a competitive talent market, companies are reevaluating executive compensation packages to attract and retain top leadership. Compensation generally includes a base level of compensation combined with some form of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Amends LWPA to Address Commissions, Incentive Payment Plans, and Bonuses to Give Greater Flexibility to Employers

Governor Jeff Landry recently signed into law Act No. 556, which updates the Louisiana Wage Payment Act (LWPA) to address commissions and plans for incentive payments and bonuses. The new law becomes effective on August 1,...more

Faegre Drinker Biddle & Reath LLP

The New Fiduciary Rule (37): Confusion about Incentive Compensation

The Department of Labor has issued its final regulation defining fiduciary status for investment advice to retirement investors and the related exemptions for prohibited conflicts—PTEs 2020-02 and 84-24. The exemptions...more

Troutman Pepper

Revisiting Financial Institution Incentive Compensation Rules Under Dodd-Frank — The Consumer Finance Podcast

Troutman Pepper on

In this episode of The Consumer Finance Podcast, Chris Willis delves into the renewed focus on incentive compensation by federal financial regulators. Joined by colleagues Sheri Adler and Jina Davidovich from the Employee...more

Womble Bond Dickinson

South Carolina’s New NIL Law and What it Means for Collegiate Athletes in the State

Womble Bond Dickinson on

On Tuesday, May 21, 2024, South Carolina Governor Henry McMaster signed bill H. 4957 into law after it was approved unanimously by state lawmakers earlier in the year. Similar NIL (“Name, Image, and Likeness”) bills to H....more

Goodwin

A Token of Appreciation: Cryptoassets and Employee Incentives - a UK Tax Primer

Goodwin on

Businesses in the blockchain and cryptoasset space are increasingly looking to utilise digital currency and other cryptoassets as an alternative to or alongside other, more traditional employee incentive arrangements, such as...more

Wilson Sonsini Goodrich & Rosati

FAQs: UK Employee Equity Incentive Annual Reporting Deadline Approaching

2023/2024 Annual Returns Must Be Filed by July 6, 2024 - Companies operating employee equity incentive arrangements in the United Kingdom, including companies incorporated or registered outside of the United Kingdom, are...more

Bowditch & Dewey

Issuing Stock Options? Be Careful!

Bowditch & Dewey on

Many corporations use stock options to incentivize employees and other service providers. A stock option is a right granted by a corporation to an employee, consultant or advisor that provides such employee, consultant or...more

Nutter McClennen & Fish LLP

Nutter Bank Report: May 2024

Headlines 1. Supreme Court Upholds the Constitutionality of the CFPB’s Funding Structure The Supreme Court has ruled that the statutory authorization that allows the CFPB to draw funds from the earnings of the Federal Reserve...more

Latham & Watkins LLP

Agencies Issue Joint Proposal to Curb Incentive-Based Compensation in the Financial Services Industry

Latham & Watkins LLP on

The proposal seeks to make executive compensation arrangements more sensitive to risk and would require complex risk management programs to ensure compliance....more

Venable LLP

Irregular Time - A Quasi-Proposed Rule on Incentive-Based Compensation

Venable LLP on

For the third time, federal agencies have issued a proposed rule to regulate incentive-based compensation paid by certain financial institutions and other entities (the 2024 Proposal). The 2024 Proposal has been released by...more

Skadden, Arps, Slate, Meagher & Flom LLP

The Third Attempt: Banking Agencies Revive Incentive-Based Compensation Rules for Financial Institutions

The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA) and the National Credit Union Administration (NCUA) recently re-proposed rules...more

Troutman Pepper

Several Regulators Re-Propose Rules to Curb Incentive Compensation at Financial Institutions

Troutman Pepper on

On May 6, the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Federal Housing Finance Agency (FHFA) issued a notice of proposed rulemaking and request for public comment to...more

Mayer Brown

Some US Regulators Repropose Joint Rule on Incentive-Based Compensation

Mayer Brown on

On May 6, 2024, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA) and National Credit Union Administration (NCUA; collectively the...more

Orrick, Herrington & Sutcliffe LLP

Agencies issue NPRM on incentive-based compensation

On May 6, the FDIC, OCC, NCUA and the FHFA issued a NPRM (proposed rule) on incentive-based compensation, pursuant to Dodd-Frank’s Section 956 (Section 956), which required federal regulators to prescribe regulations or...more

Hogan Lovells

Private equity – Navigating manager exits and management incentives in challenging times

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This article discusses the key issues to be considered where a senior executive’s employment is to be terminated and the management incentive plan needs a reset, all in the context of operating in times of economic stress....more

McGuireWoods LLP

(Some) Banking Agencies Repropose Dodd-Frank 956 Incentive Compensation Rules

McGuireWoods LLP on

Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires that six agencies — the Federal Reserve System (FRS), Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance...more

Ballard Spahr LLP

Director Chopra issues statement on FDIC/OCC/FHA proposal on incentive-based compensation arrangements

Ballard Spahr LLP on

CFPB Director Rohit Chopra has released a statement about the proposal issued by the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Federal Housing Finance Agency to address...more

Goodwin

Incentive Equity: Vesting Criteria for Management Teams of PE-Backed Portfolio Companies

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Vesting terms for incentive equity arrangements of private equity (PE) backed portfolio companies can come in many shapes and sizes. While many PE sponsors have their own preferred vesting terms, deal practitioners should...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Superior Court Finds Incentive Payment Under Profit-Sharing Scheme Is Not a Commission Under Wage Act

On January 31, 2024, in Mehra v. Boston Globe Media Partners, LLC, a Massachusetts Superior Court judge held that a percent-of-profit incentive payment under a profit-sharing scheme is not a commission subject to the...more

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