We work closely with our clients in designing, drafting, and implementing a wide variety of compensation plans and arrangements.
Our attorneys have substantial expertise in advising public and private businesses, as well as individuals, on all aspects of qualified benefit plans for employees and non-qualified benefit plans for employees and directors, as well as executive compensation arrangements—often in connection with a securities offering or merger and acquisition transaction.
Maintaining compliance while still offering custom-tailored benefits and compensation plans
We design our employee benefit plans and executive compensation arrangements to meet each client’s specific needs, within the framework provided by the Internal Revenue Code and, where applicable, bank regulatory requirements, to achieve the desired compensation and tax result. We work closely with clients to design, draft, and implement these plans and arrangements.
The plans we commonly develop include:
- Employee Stock Ownership Plans (ESOPs), including leveraged ESOPs
- 401(k) plans and profit-sharing plans
- Deferred compensation plans
- Employee stock purchase plans
- Incentive and performance-based plans
- Phantom stock plans
- Pension plans, including those funded with bank-owned life insurance (BOLI)
Tailor-made employment agreements, severance arrangements in the event of a change in control, bonus programs, and unique deferred compensation agreements are a particular focus of the firm. Our compensation professionals also work closely with our securities attorneys to negotiate, design, and draft equity-based compensation plans—such as stock option and restricted stock plans—to ensure compliance with federal and state securities laws, including registration requirements, if applicable.
ERISA Expertise
We routinely analyze the impact of golden parachute tax regulations and assess the cost of existing plans in the context of our merger and acquisition work. We also have significant experience ensuring plan compliance with ERISA, including addressing prohibited transaction concerns and structuring arrangements to avoid them.