By Julius Melnitzer | December 19, 2024
Mergers and acquisitions can give rise to many legal and financial complexities related to executive compensation.
“The key thing from acquirers’ point of view is to understand what their objectives are with respect to executive compensation,” says Elizabeth Boyd, a pensions, benefits and executive compensation partner at Blake, Cassels & Graydon LLP. “Decisions must be made regarding equity incentives, complicated tax implications and employment law considerations.”
The main consideration regarding equity incentives is whether employers want to continue, replace or cancel programs and whether they want to provide more attractive equity-based compensation to certain executives.
“The analysis always begins by asking what the commercial deal is and whether the acquirer wants to keep certain option holders engaged,” says Dov Begun, a partner at Osler, Hoskin & Harcourt LLP. MORE . . .
Julius Melnitzer is a Toronto-based legal affairs writer, ghostwriter, writing coach and media trainer. Readers can reach him at [email protected] or https://legalwriter.net/contact.
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