Taxation of claw-backs: Tribunal allows an employee to use a repaid bonus to reduce his income tax liability; opportunity for companies to operate claw-back on a tax efficient basis *

United Kingdom - February 6 2013
The First Tier Tax Tribunal (Julian Martin v The Commissioners for HMRC [2013] UKFTT 040) has allowed an employee to set-off the amount of a bonus…

Co-authors: Mark Ife, Paul Ellerman.

The £1.7 million lunch: requiring leavers under employee incentive plans to comply with restrictive covenants. *

United Kingdom - December 18 2012
A recent High Court case provides useful clarity that companies operating employee incentive plans should be able to link the exercise of a discretion to treat a departing participant as a "good leaver" to a condition that the participant has not breached their employment contract, or even that the participant complies with post-termination restrictive covenants.

Co-authors: Mark Ife, Peter Frost, Paul Ellerman.

Is clawback the new market standard? *

United Kingdom - December 9 2011
"The inclusion of clawback and malus provisions in scheme designs and executive contracts is a recognised way to prevent executives receiving rewards that are undeserved."

Co-authors: Mark Ife, Matthew Emms, Paul Ellerman.