If you are one of the approximately 30% of all public companies that will be seeking shareholder approval of their Stock Incentive Plans this proxy season, now would be a very good time to review and revise the terms of your Stock Plan document. Each year, new developments in case law, SEC and IRS rules, and good governance practices tend to occur. If you have not revised the Plan since the last time shareholders approved the Plan, you may have missed most of these. 

On Wednesday, October 29, I will be speaking to the Silicon Valley Chapter of NASPP on the topic "Changes to Your Equity Plan Documents to Reduce Risk (Thirty-Five Changes to Avoid Unwanted Outcomes).”

What are we trying to avoid?

  • Litigation Over Employment Agreement Provisions and Other Compensation
  • Litigation Over Employment Termination
  • Litigation Over Promises and Misleading Statements
  • Problems on Change in Control
  • Adverse Tax Consequences to the Company or the Employee
  • Awards Subject to Code Section 409A
  • Corporate Governance Problems and Criticism from Investors
  • A Fail on Awards Subject to 162(m)
  • Litigation over Proxy Statement Disclosure
  • Other Unwanted Outcomes