Over the years, we have advised many companies on the considerations related to suspending vesting of equity awards and/or suspending participation in an employee stock purchase plan while an employee is on a leave of absence. This seems like a relatively straightforward concept. In practice, however, it can be difficult to get right and a challenge to administer. When determining whether to adopt a leave policy, companies will want to consider: If your company has…
It’s easy to read current financial headlines and understand that it’s possible the US and other countries may be headed into or are currently already in an economic recession. Either way it doesn’t hurt to start preparing for a potential downturn. In such a downturn, it’s quite possible that corporate budgets will tighten and companies will be tasked with finding ways to stretch each dollar further than the quarter before. Equity stock plan administrators tasked…
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There has recently been a great deal of interest in the grant of a profits interest. A profits interest is a beneficial form of incentive for an individual who performs services for a partnership or other pass-through entity, like a limited liability company. Bottom line, a profits interest (also commonly known as a “carried interest”) is a non-capital interest in the profits of a partnership or a membership interest in a limited liability company taxed…
The Baker McKenzie global pensions team is delighted to announce the launch of the Global Pensions Heatmap. The heatmap sets out key information and principal pension issues that companies should be aware of in over 40 jurisdictions across the world and provides a snapshot of Baker McKenzie’s international transactional pensions presence and expertise. Organisations are able to identify the type, complexity and transaction requirements of pensions funds across multiple jurisdictions all in one place by…
With the COVID-19 pandemic impacting all facets of business, this webcast focuses on the implications for employers and their pension arrangements. Increased economic pressure, new legislation and recent government guidance is impacting how employers are navigating these changes across the globe. With a spotlight on the UK, US and Australia, we discuss key pension issues and practical steps employers should be taking moving forward. Click here to watch the podcast.
Effective as of February 1, 2020 Institutional Shareholder Services (ISS) will increase its focus on gender diversity within corporate boards of directors with its updated policy on diversity in corporate board composition. This policy was announced in its “Proxy Voting Guidelines Updates for 2020” published on November 11, 2019. After publishing its original board composition diversity policy, which allowed for a one-year transition period, ISS now increases the pressure on public companies to make a…
In a Private Letter Ruling released on August 17, 2018 (PLR 201833012) (“Ruling”), the IRS approved an employer’s proposed amendment to its 401(k) plan (“Plan”), under which it would make an employer non-elective contribution on behalf of an employee conditioned on the employee making student loan repayments (“SLR non-elective contribution”). As described in the Ruling, the proposed student loan repayment benefit program (the “program”), is a voluntary program under which the employee must elect to…
Now is the time to consider opportunities to manage global pension cost and risk. Many employers have already frozen their defined benefit plans and implemented defined contribution plans. Of course, such cost-reduction strategies may raise employment law issues in non-US jurisdictions because of the Acquired Rights Directive in EU jurisdictions and similar legislation elsewhere. In considering any such change, an employer has to consider how such change will be communicated to employees and employee representatives,…
The Fifth Circuit recently vacated the US Department of Labor’s (“DOL”) 2016 fiduciary rule that had expanded ERISA’s fiduciary definition to those providing investment advice for a fee to an ERISA plan or its participants. In light of the Fifth Circuit’s decision, the DOL has issued a temporary enforcement policy halting the enforcement of certain prohibited transaction claims against investment advice fiduciaries. Under Field Assistance Bulletin 2018-02, the DOL indicated that it will not pursue…