Equity Compensation

Designing an equity compensation requires careful coordination of tax, securities and accounting considerations.  Tax effects include qualifications for incentive stock options and Section 162(m) deduction rules for named executive officers.  Securities considerations include registering equity investments for public companies and securing exemptions for private companies.  Accounting considerations include understanding how different equity compensation techniques impact earnings and how future amendments can change expected compensation expense reporting.

We regularly assist in clients designing equity compensation arrangements that meet their incentive and retention goals whether the client is a public company or privately held corporation or limited liability company.  Our experience includes all forms of stock options, restricted stock, stock appreciation rights, phantom stock, deferred issuance stock awards, stock purchase programs, use of equity derivatives and conversion of equity compensation into deferred compensation.  We also advise clients regarding use of equity compensation for estate planning, clawback provisions for non-competes and divorce decrees.

Contacts

Executive Compensation Client Services

McDermott Will & Emery

McDermott Will and Emery