Executive Compensation

We help companies achieve their business goals with their executive compensation plans and executive employment agreements.

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With our understanding and practical application of complex tax rules, we help companies find innovative ways to structure executive compensation to create incentives for valued executives and take into account the interests of investors and governmental agencies.

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Executive compensation is a business decision, not just a legal issue.

A successful executive compensation package must not only comply with applicable regulations and corporate governance, but also help the company meet its business goals (including attracting, retaining and motivating the company’s key executives). Littler understands how these complex and regulated arrangements impact an employer’s operations and market presence.

A well-designed executive compensation program aligns the interests of executives with the interests of the employer and its shareholders/stakeholders. We partner with your corporate lawyers to determine how executive compensation may directly affect the company overall. We also understand the economics of an executive compensation package so that we can help employers avoid unexpected costs or business risks while also avoiding unintended tax risks.

Establishing ways to attract and retain key management
Counseling on potential loss of deductibility of compensation and excise taxes (particularly related to a sale or change in control of corporate employers implicating the golden parachute tax rules)
Navigating the potentially strict requirements and severe tax penalties that may apply to non-qualified deferred compensation and compensation in the form of equity awards or phantom equity awards
Handling the complexities and potential risks of exit packages, including issues under Section 409A of the Internal Revenue Code
Understanding shareholder and corporate governance issues, including counseling on alternatives for dealing with change of control issues
Advising on executive retirement and “golden handcuffs”
Assisting employers with sensitive considerations surrounding the departure of executives to advise on critical issues of separation, severance and restrictive covenants
Auditing executive plans to identify concerns, including executive severance pay, incentive bonus and supplemental retirement plans
Working with government and other tax-exempt employers to deal with the particular statutory and regulatory provisions and tax rules applicable to those employers

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Variable Compensation Plans

We have worked extensively with variable compensation plans designed to provide pay for performance.

Our lawyers work closely with employers to help ensure that performance goals are well-defined and attainable, meeting the objectives of the executives, the organization, and other stakeholders. The value and benefit of these variable compensation plan arrangements may not be fully apparent to corporations and tax-exempt organizations. Littler attorneys are well schooled in such arrangements and can work with the employers sponsoring them to understand the objectives regarding participating executives and educate clients on the ERISA and Internal Revenue Code rules that must be taken into account.

“Clients with executive compensation arrangements should be aware of potential issues lurking in the documents. They cannot be put in a file and forgotten about as the complex regulatory and tax schemes may change.”

Warren E. Fusfeld
Shareholder

Warren E. Fusfeld

Shareholder

Help for Employers of Any Type

We know how to deal with the many complex tax and governance issues that are often critical in executive compensation matters, whether for public, private, non-profit or government entities.
Efficient Services

Our experience in executive compensation has allowed us to develop best practices and a database of requisite forms and model plans.
Integrated Practice

Littler’s robust employee benefits practice group supports and complements our executive compensation lawyers. Our team also integrates veteran litigators well-versed in executive compensation issues.
Nationwide Footprint

With our nationwide geographic coverage, we can assist employers with executive compensation issues quickly, effectively, and efficiently, regardless of where they arise.
Global Experience

For employers with an international presence, there can be peace of mind that our executive compensation experience spans the globe.