Structuring Golden Parachute Agreements

This 25-page research report written for both attorneys and executives, features the main components of executive compensation plans, particularly golden parachute arrangements. It explores the most common types of golden parachutes and the trigger events that they are based upon. Leading executive compensation attorneys discuss the most important elements that should be determined when designing a written agreement. From the initial first step of identifying eligible employees to strategies for handling possible disputes, this report pinpoints important issues that can affect the design of a golden parachutes arrangement. Timely preparation and the use of clear language in structuring an employment agreement so as to avoid misunderstanding when identifying trigger events and specific time periods are just two of the many strategies for adding value for the client emphasized in this report.

Other topics include:

• single and double trigger agreements and termination triggers
• change in control severance plans
• claw-back provisions
• release agreements
• non-disparagement provisions
• third party disputes
• arbitration and mediation provisions
• enforcing contracts
• Internal Revenue Code section 280G
• stock options and restricted shares
• gross ups
• excess parachute payment
• nonqualified deferred compensation payments
• actuarial reductions
• tin parachute
• three-times rule
• supplemental retirement benefit

This Executive Report is written by:

• Michael E. Pietzsch, Senior Attorney, Pietzsch, Bonnett & Womack PA - An Overview of Golden Parachutes
• Judith Droz Keyes, Partner, Morrison & Foerster LLP - Strategizing a Golden Parachute Agreement
• John Aguirre, Partner, Wilson Sonsini Goodrich & Rosati - Determining the Components of a Golden Parachute Agreement
• 4Howard Pianko, Shareholder, Epstein Becker & Green PC - Structuring Golden Parachutes for Executives
• James Dudley Hyde, Esq., Attorney, McAfee & Taft, A Professional Corporation - A Focus on Change of Control Agreements
• Gregory K. Brown, Partner, Gardner Carton & Douglas LLP - Steps to Structuring an Employment Agreement

About Executive Reports:

Executive Reports offer focused, hard-hitting advice from the leaders of some of America's top companies, packaged in a concise, readable format. Each research report provides readers with 3 to 5 strategies that will have a direct financial impact on their business. While not meant as a comprehensive guide, each report includes quick-hit items that can immediately impact specific business strategies. Executive authors drill down to the central issues surrounding each topic area and dispense expert advice in concise, direct language. Executive Reports feature leading professionals selected by the Aspatore Editorial Board based on their experience, research, and standing within the professional community.