19 Apr 2022
Pay for Performance: Using Restricted Share Units in Compensating Executives
Top level talent remains in high demand, and many employers are seeking innovative ways to lure and retain executives. That can pose a challenge for many employers, in particular later stage start-ups, for whom stock option grants (traditionally a significant element of compensation) may be insufficient to recruit or retain employees. One potential solution is to grant restricted stock units.
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Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- Retirement Plans. IRS announces proposed rules, pursuant to the SECURE Act, on an exception to the unified plan (or “one bad apple”) rule available for qualified multiple-employer plans (MEPs) offered by a pooled plan provider (or for which all employers have another common interest) such that noncompliance by one participating employer will not result in full plan disqualification if certain conditions are met. 87 Fed. Reg. 17,225 (March 28, 2022).
- Health and Welfare Plans. CMS extends until further notice its non-enforcement policy (otherwise due to expire 10/1/22) allowing grandfathered health insurance policies and plans in the individual and small group market to continue exemption relief from certain healthcare reform requirements. CMS, Extended Non-Enforcement of ACA-Compliance with Respect to Certain Policies.
- Health and Welfare Plans. IRS, in consultation with DOL and HHS, issues guidance under the No Surprises Act on rules for determining 2022 qualifying payment amounts when a plan or policy lacks relevant historical claims data. I.R.S. Notice 2022-11.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.
- The Practical Guidance Journal Spring 2022 Edition includes market trends on post-employment restrictive covenants.
- New Practical Guidance Content
- Responding to IRS Letter 226J
- IRS Practice Unit: Deferred Compensation Received by Nonresident Alien Individuals
- Broad ‘SECURE 2’ Retirement Bill Gets Overwhelming House Approval
- A Primer on ERISA’s Preemption of State Laws
- A “No Surprises” Approach to Taxation of Settlements for Employment Claims
- Department of Labor as ERISA's Cops: DOL ERISA Enforcement Overview and Current Priorities
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