Change in Control Protection
Change in control transactions raise sensitive tax, corporate governance and disclosure concerns. Golden parachute tax penalties can dramatically reduce benefits for executives and increase transaction costs that reduce the purchase price. Shareholders groups scrutinize whether change in control agreements actually further the company's interest.
Our experience with compensation-related issues in mergers and acquisitions for both public companies and privately held businesses includes the design and enforcement of severance agreements, rabbi trusts, replacement equity grants, retention plans and funding for legal fees. We regularly counsel clients when enforcing change in control provisions, obtaining shareholder approval for privately held companies and pursuing golden parachute refund claims with the IRS.
Our Firm recently played a significant role on behalf of a client in persuading the Treasury Department and the IRS to change the individuals considered to be subject to the golden parachute rules. Changes under reproposed regulations in February 2002 have allowed employees who were improperly subject to golden parachute provisions to recover significant excise taxes from the IRS.
Contacts
- Andrew C. Liazos
+1 617 535 4038
Send E-mail - Stephen Pavlick PC
+1 202 756 8312
Send E-mail - William R. Pomierski
+1 312 984 7531
Send E-mail
