News & Analysis as of

Vesting

Cozen O'Connor

From Execution to Distribution: Lessons from the BC Court of Appeal on Will Validity and Vesting

Cozen O'Connor on

Two recent decisions from the British Columbia Court of Appeal, Kroeger v. Bush Estate, 2026 BCCA 16, and Lewis v. Jack, 2026 BCCA 18, provide timely guidance on two recurring pressure points in estate law: the validity of a...more

Phelps Dunbar

Does the False Claims Act’s Whistleblower Provision Violate the Constitution? Oral Argument on U.S. ex rel Zafirov v. Florida...

Phelps Dunbar on

On a path that likely leads to the U.S. Supreme Court, the Eleventh Circuit Court of Appeals held oral argument last week in United States ex rel Zafirov v. Florida Medical Associates, LLC, et al. Judges Elizabeth L. Branch,...more

Dorsey & Whitney LLP

The Eleventh Circuit Hears Oral Argument in Zafirov: The Case that Could Upend Qui Tam Litigation

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On December 12, 2025, the Eleventh Circuit heard oral arguments in United States ex rel. Zafirov v. Florida Medical Associates, an appeal challenging relators’ authority to bring claims under the qui tam provisions of the...more

Pillsbury - Propel

Why Startup Founders Should File an 83(b) Election

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For recipients of restricted shares in a startup (i.e., private company), equity is often the most valuable part of their compensation packages. However, how and when that equity is taxed will make a significant difference in...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

ERISA Basics 101: Puerto Rico, Vesting Schedules, and Other Unforgettable Lessons

When you work as an ERISA attorney for TPAs for nearly a decade, you get a front-row seat to some of the most creative interpretations of the law imaginable. I don’t say that as an insult—I say it as someone who spent ten...more

Mintz Edge

Stock Vesting in Startup Companies

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Building a company from the ground up is a risky (but hopefully rewarding) endeavor for founders. In exchange for the founders’ efforts and devotion to the success of the company, the founders take a significant equity stake...more

FBT Gibbons LLP

Three Critical Legal Mistakes Startup Founders Can’t Afford to Make

FBT Gibbons LLP on

Founders tend to be laser-focused on building, launching and scaling their startups as fast as possible, eager to see their passion project transform into a thriving business. Yet, in the rush to get to market, founders too...more

Troutman Pepper Locke

DOL Advisory Opinion Confirms Post-Employment Vesting Provisions in RSUs Should Not Create an ERISA Pension Plan

Troutman Pepper Locke on

On September 9, 2025, the Department of Labor (DOL) issued Advisory Opinion 2025-03A addressing the following question: Are awards of restricted stock units (RSUs) that permit post-employment vesting considered a “pension...more

Goodwin

Online Filing of Section 83(b) Elections Is Here!

Goodwin on

Last year, the US Internal Revenue Service (IRS) released Form 15620 for taxpayers to make elections under section 83(b) of the Internal Revenue Code, an important part of US tax planning for founders, employees, board...more

BCLP

Revisiting Vesting Orders in Internet Scam Cases

BCLP on

In our previous article titled Fraud Cases: Hong Kong Court’s Jurisdiction on the Grant of Vesting Orders, our team discussed the remedy of vesting orders in providing relief to victims of internet fraud in recovering their...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Group Employee Terminations

Foley & Lardner LLP on

Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Blake, Cassels & Graydon LLP

La Cour d’appel de l’Alberta se prononce sur une fiducie par interprétation et une ordonnance de dévolution inversée

Le 20 février 2025, la Cour d’appel de l’Alberta (la « CAA ») a publié sa décision dans l’affaire Henenghaixin Corp v. Long Run Exploration Ltd (l’« affaire Henenghaixin ») rejetant une demande d’autorisation d’interjeter...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Vesting doesn’t help with retention

I have worked at places that were so unpleasant that I consider myself lucky the vesting schedule was only six years. If they had the option, I’m convinced they would have implemented a 20-year vesting schedule. For me,...more

Blake, Cassels & Graydon LLP

Constructive Trust Claim Dismissed As Court Backs Reverse Vesting Order

On February 20, 2025, the Alberta Court of Appeal released its decision in Henenghaixin Corp v. Long Run Exploration Ltd, dismissing an application for leave to appeal a decision rendered in the Companies’ Creditors...more

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

Second Circuit Renders Important Decision on Vested Retiree Benefits

In a significant ruling on February 5, 2025, the U.S. Court of Appeals for the Second Circuit addressed the enforceability of an arbitration provision in an expired collective bargaining agreement (CBA) in the case of Xerox...more

BCLP

Don’t Forget Accounting Rules When Accelerating Vesting of Stock-Based Awards

BCLP on

Last month, the SEC settled charges against Celsius Holdings, Inc. for allegedly improper accounting when it modified equity compensation awards for six departing employees and retiring directors. The errors caused allegedly...more

Holland & Knight LLP

An Emerging Trend in ERISA Class Action Litigation: 401(k) Forfeiture Suits

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There has been a recent uptick in ERISA class actions challenging the use of 401(k) plan forfeitures. Forfeitures are employer contributions that participants forfeit when they leave employment before those contributions vest...more

Cooley LLP

Early Lock-Up Releases: Overview and Trends

Cooley LLP on

Lock-up agreements prohibit company insiders (founders, directors, executive officers and major stockholders) and other pre-IPO stockholders from selling their shares for a period of time after an offering. Lock-ups are...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

I don’t see Roth Employer Contributions as being a big thing

One of the option of SECURE 2.0 is allowing employers to offer partricipants the right to Roth Employer contributions where they can pay the taxes upfront, and get tax free treatment on employer contributions....more

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: Special Considerations for Publicly-Traded Companies

Foley & Lardner LLP on

This article is the seventh and final in our series on equity-based compensation. It will provide an overview of special considerations for publicly-traded companies when granting equity awards, including the impact of proxy...more

Goodwin

A New Form Section 83(b) Election: IRS Form 15620

Goodwin on

As part of US tax planning for founders, employees, board members, and other individual service providers who receive equity that is subject to vesting in connection with their services, Section 83(b) elections are frequently...more

Wilson Sonsini Goodrich & Rosati

“It’s Not About How Much Stock You Have; It’s About How Much Copper Wire You Can Get Out of the Building With”: Founder Exits...

The founders and exec team are a critical component of an early-stage company’s business value. In a previous article, we provided detailed guidance on the comparison of U.S. and UK market practices in relation to equity...more

Quarles & Brady LLP

Forfeiture Funds: Legal Requirements, Permitted Uses, and Litigation Risk Management

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Forfeiture funds in 401(k) plans represent a unique asset pool with specific regulatory requirements and practical applications. Forfeiture funds arise when participants terminate employment with the company before becoming...more

Farrell Fritz, P.C.

Stockholders’ Agreements for Startups: When to Sign, When to Skip

Farrell Fritz, P.C. on

I’m often asked by clients whether startups should have a separate stockholders’ agreement among the founders.  The answer largely depends on whether they have or will have certain other startup documents in place....more

Snell & Wilmer

ISS Issues Guidance on “Robust” Clawback Policies

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On October 11, 2024, Institutional Shareholder Services Inc. (“ISS”), a leading proxy advisory firm, updated their Equity Compensation Policies Frequently Asked Questions (“FAQs”) to define what it means for a clawback policy...more

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