On 25 August 2022, the Securities and Exchange Commission released a final rule in the form of new Item 402(v) of Regulation S-K that seeks to shine an ever-brighter spotlight on the link between executive pay and company performance at certain US public companies.
On 24 November 2020, the SEC proposed amendments to the Form S-8 registration statement relied on by Exchange Act1 reporting companies and the Rule 701 exemption from registration2 available to non-reporting companies for equity awards and other compensatory securities offered to employees, directors, consultants and advisors. The proposed changes are intended to modernize and simplify the securities offering requirements for such compensatory offerings, while maintaining investor protection.
In a companion release issued on the same date, the SEC issued proposed temporary rules that would expand the availability of Rule 701 and Form S-8 for securities offerings to so-called “gig” workers, in recognition of a changing modern workforce.
The SEC is seeking comments on both sets of proposed rules, on or before February 9, 2021.
Buyers in a merger and acquisition transaction oftentimes intend to rely on their target company’s management to remain and assist them with running the purchased business. Particularly in industries where human capital is the primary or perhaps only capital, such as technology or services companies, the art of retention—or motivating…
One of the most important issues that arises in any M&A transaction from a compensation perspective is the treatment of stock options, restricted stock, restricted stock units (RSUs) or other compensatory equity awards, whether vested or unvested, held by executives and other employees in the transaction. Below is a high-level…
The Coronavirus Aid, Relief, and Economic Security Act (the Act) was passed by the US House of Representatives by a voice vote today after being passed by the US Senate on Wednesday. The bill now heads to the White House, where President Trump is expected to sign it very soon.…
Companies should give thoughtful consideration to their disclosure of human capital management, or HCM, topics as more companies trend toward increased disclosure of environmental, social and governance matters in their annual proxy statements and other public disclosures. HCM is increasingly becoming a key area of focus for stockholders and proxy…
On December 20, 2019, the Treasury and IRS released proposed regulations1 implementing the Tax Cuts and Jobs Act’s changes to section 162(m)’s $1,000,00 limit on the deductibility of “covered employee” compensation.2 In key part, the TCJA3 eliminated the exception from section 162(m) for performance-based compensation and expanded the covered employees…