Equity Incentive Arrangements

Reid and Riege assists its clients in the formation and administration of equity-based arrangements to reward employees and consultants who achieve high levels of performance.  Equity-based arrangements may include stock option plans, stock appreciation rights plans, restricted stock plans, and phantom stock plans.  We advise clients with respect to the design of such plans, based on the clients’ objectives.

Recently-enacted rules governing the taxation of nonqualified deferred compensation arrangements (the so-called Section 409A rules) have a significant impact on equity incentive arrangements.  In a recent matter, we helped a client establish a stock appreciation rights plan to provide incentive-based compensation to employees who contribute to the growth of the company.  The plan had to be designed carefully in order to avoid the applicability of the new Section 409A rules.

For additional information, contact John V. Galiette (860) 240-1009, jgaliette@reidandriege.com, John J. Jacobson (860) 240-1006, jjacobson@reidandriege.com, (860) 240-1009 or Ron Koniuta (860) 240-1034, rkoniuta@reidandriege.com.