Headlines about "Stock plans - misc"
Gathered from the web by the editors at BenefitsLink.com.
In Singapore, Stock Option Tax Exempted for Employees of Qualifying Start-Ups
Excerpt: "Employees of qualifying start-up companies will enjoy a 75 percent tax exemption on gains from stock options or share ownership plans under the Equity Remuneration Incentive Scheme (ERIS). ERIS will be available between February 16, 2008 and February 15, 2013." (Watson Wyatt Worldwide)
Risk and Lack of Diversification under Employee Ownership and Shared Capitalism
Excerpt: "Some analysts view risk as the Achilles Heel of employee ownership and to some extent variable pay plans such as profit sharing and gainsharing. Workers in such 'shared capitalist' firms may invest too much of their wealth in the firm, contrary to the principle of diversification. This paper addresses whether the risk in shared capitalism makes it unwise for most workers or whether the risk can be managed to limit much of the loss of utility from holding the extra risk. We create an index of financial security based on worker pay and wealth, and find that workers who feel financially insecure exhibit fewer of the positive outcomes associated with shared capitalism, and are less interested than other workers in receiving more employee ownership or even more profit sharing in their workplaces." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)
It's Not a Good Idea to Let Company Stock Dominate 401(k)
Excerpt: "'No company, no matter how large, how well thought of or how well-capitalized, is immune from bad things happening,' says Christopher Jones, chief investment officer for Financial Engines, which provides advice to 401(k) plan participants. If your 401(k) is loaded up with company stock and your employer falls on hard times, he says, 'You could easily find yourself not only bereft of retirement savings but also your job.'" (USA TODAY)
Employee Ownership Update for August 29, 2008
NCEO Executive Director Corey Rosen discusses a study of 328 majority ESOP-owned companies finding that they have sales per employee that are 8.8% greater than comparable non-ESOP companies; a new NCEO issue brief on the state of broad-based employee equity plans; a new IRS analysis finding that the top 47,000 families in the U.S. own $1.196 trillion in public and private corporate equity; and a correction to a prior story on Appleton, Inc. (National Center for Employee Ownership)
NCEO Issues Issue Brief on the Future of Broad-Based Equity Plans
The NCEO presents excerpts from its revised Issue Brief on the Future of Broad-Based Equity Plans, written by NCEO Executive Director Corey Rosen. The issue brief looks at how the markets will react to stock option expensing, how expensing and greater concern about dilution are affecting broad-based equity plans, and the impact of broad-based plans on corporate performance. (National Center for Employee Ownership)
Fair Value Transfer: Measuring the Costs of Aggregate Long-Term Incentive Grant Practices (PDF)
22 pages. Excerpt: "We are pleased to present our fourth survey of aggregate fair value transfer ('FVT'), measuring the total value transferred from shareholders to employees through grants of long-term incentive compensation. Our research of 240 companies, spread across four broad industry sectors, revealed that aggregate FVT rates leveled off in 2006 and 2007 following previous declines from 2003 to 2005. In the following pages, we present a detailed explanation of our analysis, along with other key findings." (Frederic W. Cook & Co., Inc.)
Class Action Filed to Recover Retirement Benefits for Employees of Failed Arkansas Bank
Excerpt: "A class action filed on behalf of over 250 former employees of ANB Financial, N.A., charges that the bank holding company, individual trustees, and other fiduciaries of the ANB Employee Stock Ownership Plan (ESOP) breached their duties to plan participants by continuing to invest participants' retirement savings in company stock even after the fiduciaries knew that the bank was engaged in unsafe and unsound banking practices." (Lewis, Feinberg, Lee, Renaker & Jackson P.C.)
More Education Needed on Equity Compensation
Excerpt: "New research from Fidelity indicates equity compensation plans encourage employee loyalty and productivity, but many employees are not reaping the total rewards from this incentive due to lack of understanding. Overall, the study from Fidelity Stock Plan Services suggests 16% of the U.S. work force is enrolled in at least one type of stock plan, while 9% are enrolled in multiple plans." (PLANSPONSOR.com; free registration required)
Fifth Third Bancorp Slapped with Stock-Drop Participant Lawsuit
Excerpt: "Fifth Third Bancorp has joined the ranks of plan sponsors hit with a participant stock-drop lawsuit with a new case filed this week alleging bank officials imprudently kept a stock fund in their plan." (PLANSPONSOR.com; free registration required)
Court Tells 401(k) Participants at Home Depot They Can Sue
Excerpt: "A lawsuit that 401(k) participants filed against Home Depot and former executives -- including Robert Nardelli and Ken Langone -- has been given new life. The suit, which was dismissed in district court, has now been revived by an appeals court ruling that asserted participants may sue the company to recover losses that were sustained from holding Home Depot stock in their 401(k) plans." (Financial Week; free registration required)
Employee Class Action Suit Against Home Depot Revived
Excerpt: "A class action lawsuit filed by Home Depot employees against former company CEO Robert Nardelli and several directors has a new lease on life. The case has been revived by a federal appellate court decision that gives a life line to the retirees while being pro-business, said two lawyers who studied the case. The lawsuit, possibly worth tens of millions of dollars to current and future retirees, alleges that Nardelli, and other directors . . ., mismanaged the employees' defined contribution plan by purchasing Home Depot stock even though the executives backdated stock options." (The Atlanta Journal-Constitution)
Unsound Business Practices by Bank Leads to Company Stock Suit
Excerpt: "Former employees of the now-closed ANB Financial are suing members of the bank's retirement plan committee over the loss of an estimated $56.37 million in their retirement plan." (PLANSPONSOR.com; free registration required)
ANB Financial Employees Seek Recovery of Lost Retirement
Excerpt: "At least 250 former employees of now-closed ANB Financial say some of the bank's officers should be held responsible for the loss of more than $50 million in the workers' retirement plan. The bank's retirement plan participants, led by plaintiffs Jan Taylor, Carla Crosswhite and Laura Godsey, filed claims of federal ERISA violations in the U.S. District Court for the Western District of Arkansas on Tuesday." (The Morning News)
[Guidance Overview] What Happens When Vested Stock is Traded for Nonvested Stock?
Excerpt: "The IRS has issued guidance on the tax consequences to an employee (or other service provider) of trading vested stock for nonvested stock. The Service did so in Revenue Ruling 2007-49." (Utz, Miller, Kuhn & Eickman, LLC)
Milberg LLP Announces Its Investigation Relating to the IndyMac Bank, F.S.B. 401(k) Plan
Excerpt: "The complaints charge that IndyMac and certain fiduciaries of the Plan with violations of the Employee Retirement Income Security Act of 1974 ('ERISA'). It is alleged that defendants knew or should have known that IndyMac's growing exposure to non-performing assets, particularly loans in its pay-option adjustable-rate mortgages ('Option ARM') and homebuilder construction portfolio, has rendered IndyMac common stock an imprudent, inappropriate and risky investment for the Plan's participants." (MarketWatch)
Employee Ownership Update for July 15, 2008
NCEO Executive Director Corey Rosen discusses innovative ideas in compensation, including an ESOP company that allows managers to choose between fixed and incentive-based compensation; a suit against Sovereign Bank by employees over the company's ESOP and company stock in the 401(k) plan; a restricted stock/stock unit practice guide from the CEP Institute; and the final opportunity to take the NCEO's new survey on equity compensation practices in closely held companies. (National Center for Employee Ownership)
Technical Issues Related to Accelerated Vesting of Restricted Stock Units at Retirement (PDF)
4 pages. Excerpt: "The accelerated vesting of RSUs can make them a form of nonqualified deferred compensation, subject to a variety of tax issues. This letter discusses three tax issues arising from the accelerated vesting of RSUs of which employers should be aware." (Frederic W. Cook & Co., Inc.)
Stock Holdings in Retirement Plans May Require Special Treatment
Excerpt: "The best approach depends on a number of things, including the price the employees or company paid for the stock, the taxes that apply and whether they have the discipline to reinvest any proceeds wisely to provide for future needs, such as retirement or college. Debra Light, a principal at Moneta Group, said one strategy involves looking at the net unrealized appreciation -- the difference between the current price of the stock and the cost basis (the amount the employees or employer originally paid for the stock)." (St. Louis Post-Dispatch)
Dell Cleared in ERISA Breach of Fiduciary Case
Excerpt: "The court decision appears correct, but it begs an important question: what role should employers take in providing investment education to their employees? This is a trickier question than it first might appear because although 'investment education' is not fiduciary activity, 'investment advice' is, and the line between the two can be murky." (Workplace Prof Blog)
Suit Alleges NovaStar Officials Mismanaged Employee Retirement Plan
Excerpt: "A new class-action lawsuit filed against NovaStar Financial Inc. alleges that the company and its officers mishandled their responsibilities for overseeing the employee retirement plan when they invested heavily in NovaStar's stock." (Kansas City Business Journal; bizjournals.com; free registration required)
Court Sides with Dell in Company Stock Suit
Excerpt: "The U.S. District Court for the Western District of Texas ruled that fiduciaries of the Dell Inc. 401(k) Plan did not violate their duties under the Employee Retirement Income Security Act (ERISA) by allowing more than 50% of the plan's assets to be invested in Dell company stock." (PLANSPONSOR.com; free registration required)
The IRS Targets a Popular, and Perfectly Legal, Strategy Used by Executives for Dodging the Tax Man
Excerpt: "At issue are variable prepaid forward contracts, which allow executives to get cash for their stock holdings while skirting capital gains taxes. They have served as an appealing retirement planning device for executives who want to reduce their personal financial exposure to their own companies as a result of stock option grants, although much of that diversification flies in the face of pay-for-performance demands by shareholder activists." (Financial Week; free registration required)
Keller Rohrback starts ERISA investigation against UBS
Excerpt: "Keller Rohrback has commenced an investigation against UBS for potential violations of the Employee Retirement Income Security Act, as amended. The investigation focuses on investments in UBS stock by the UBS Savings and Investment Plan." (Insurance Business Review)
Law Firm Continues Probes of Fiduciary Breaches
Excerpt: "The law firm of Stember Feinstein Doyle & Payne, LLC announced it is investigating conduct causing losses to the Fifth Third Bancorp Master Profit Sharing Plan, the company's 401(k) plan, which may have violated the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)
Preliminary Approval of Dynegy Settlement
Excerpt: "[In Lively v. Dynegy, Inc., t]he class plaintiffs alleged that the fiduciaries of the Illinois Power Company Incentive Savings Plan for Employees Covered Under a Collective Bargaining Agreement breached their duties to the Plan's participants by investing and permitting the investment of Plan assets in stock of the sponsoring employer, Dynegy, Inc." (Lewis, Feinberg, Lee, Renaker, & Jackson, P.C.)
[Guidance Overview] Two New Employer Stock Drop Cases Emphasize Advantage of Proper Plan Language
Excerpt: "[T]he cases indicate that even when the plan document requires the investment in employer securities, all relevant plan documents must be reviewed. The investment policy in particular will be important. Generalized language in terms of a fiduciary's responsibility for plan investment choices should be examined and possibly clarified with respect to the employer stock held by a plan. Plan fiduciaries must also consider whether to incorporate securities filings into the SPD." (Tax Management Inc.)
[Guidance Overview] Rule 10b5-1 Plan Creating Litigation - In Re Countrywide Financial Corp. Derivative Litigation
Excerpt: "A Rule 10b5-1 plan, when correctly designed and adopted, gives executives a safe and effective way of buying or selling their companies' securities free of insider trading concerns. However, the Countrywide case underscores the importance of proceeding with caution when adopting, modifying, or terminating a Rule 10b5-1 plan." (Michael S. Melbinger via Winston & Strawn LLP)
[Guidance Overview] General Partner Clawback Provisions in Private Equity Agreements (PDF)
4 pages. Excerpt: "Most limited partnership agreements for private equity funds have two separate clawback components: The limited partner clawback and the general partner clawback. This Investor Alert discusses the general partner clawback." (Reinhart Boerner Van Deuren s.c.)
Are the Employer Stock Cases Laying the Groundwork for Claims beyond Employer Stock Funds? (PDF)
Pages 3-4 of 8 pages. Excerpt: "In light of the current litigation environment, where applicable, fiduciaries also should consider documenting why the plan is offering high risk/high return investment options, and educating participants on how these options are meant to work within, and to be only a part of, a participant's diversified portfolio of investments." (Proskauer Rose LLP)
[Guidance Overview] Kirschbaum v. Reliant Energy - Fraud-Based Employer Stock Drop Claims (PDF)
Pages 2-3 of 8 pages. Excerpt: "In Kirschbaum v. Reliant Energy, Inc., 2008 WL 1838324 (5th Cir. Apr. 25, 2008), the Fifth Circuit addressed a fiduciary stock drop claim arising out of the energy trading scandals occurring between 1999 and 2001." (Proskauer Rose LLP)
[Guidance Overview] A Bonus Paid in Stock - Why You Might Refuse
Excerpt: "Why would any employee want to refuse a bonus in stock? Well, that would depend. What would the tax effect be to him on the receipt of the stock? How much value would the stock have for tax purposes? Where would the cash to pay the tax come from? Could any of the stock be sold to raise the cash to pay the tax? And if the stock couldn't be sold now, when could it be sold and what if the stock loses value by then?" (Tax Management Inc.)
Tech Workers Finding It Easy to Get Lost on Road to Retirement As IPO Market Isn't As Dependable As It Once Was
Excerpt: "The mythology of the technology boom was that employees would give their all for the company cause and then wait for the big payoff. It could come from an initial public offering -- where frenzied investors would magically turn stock options into cash -- or from a lucrative buyout by a larger firm." (The Austin American-Statesman)
Wachovia 401(k) Plan Under Investigation
Excerpt: "A law firm investigates whether conduct of fiduciaries to the Wachovia Savings Plan violated ERISA by not disclosing the risk of company stocks in light of the sub-prime mortgage risks." (planadvisor.com)
[Guidance Overview] Issue Brief: The Final 409A Deferred Compensation Regulations
The NCEO presents excerpts from its new issue brief on the final deferred compensation regulations under Section 409A of the Internal Revenue Code. (National Center for Employee Ownership)
Humana Named in Purported Class Action Lawsuits Claiming ERISA Violations, Rate Fixing
Excerpt: "Humana Inc. said Monday it has been named as a defendant in a purported class action lawsuit claiming the health insurer provided certain retirement plan participants with misleading information, among other things. The complaint was filed May 1 in U.S. District Court in Kentucky by participants in and beneficiaries of the Humana Retirement and Savings Plan and the Humana Puerto Rico Retirement Plan, according to a filing with the Securities and Exchange Commission." (CNNMoney.com)
In U.S. Sugar Stock Plan, Employees See Stacked Deck
Excerpt: "Some former U.S. Sugar employees have since filed a lawsuit accusing company insiders of cheating them out of money that was rightfully theirs. Throughout, the worker-owners have been shut out of information about the company's finances and unable to challenge management's moves or vote because their shares were held through a retirement plan, not directly." (The New York Times; free registration required)
[Guidance Overview] Court Adopts Prudence Presumption in Stock Drop Case: No Fiduciary Breach for Failure to Divest Employer Stock
Excerpt: "This is one of a number of 'stock drop' cases in which 401(k) plan participants who have experienced losses in their employer stock investments have claimed that their losses were caused or exacerbated by breaches of fiduciary duty. As discussed in the opinion, the courts have struggled in these cases with reconciling ERISA's duty of prudence with its explicit exception from the duty to diversify for employer stock investments." (Employee Benefits Institute of America)
Sugar Workers Say Company Cheated Them on Pensions
Excerpt: "Workers at U.S. Sugar thought they were getting a good deal when the company shelved their pension plan and gave them stock for their retirement instead. They had a heady sense of controlling their own destiny as they became the company's biggest shareholders, Vic McCorvey, a former farm manager there, said. . . . Now that many U.S. Sugar workers are reaching retirement age, though, the company, the largest U.S. producer of cane sugar, has been cashing them out of the retirement plan at a much lower price than an outside investor offered for their shares." (International Herald Tribune)
[Guidance Overview] Court Gives ERISA Plan Fiduciaries Presumption of Prudence (PDF)
3 pages. Excerpt: "Fiduciaries of 401k plans and other eligible individual account plans recently received some comfort from the U.S. Court of Appeals for the Fifth Circuit, which affirmed a grant of summary judgment for defendants in a class action alleging that the fiduciaries should have ceased investing plan assets in employer stock, contrary to the plan's express requirements." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview] Court Gives ERISA Plan Fiduciaries Presumption of Prudence
Excerpt: "Fiduciaries of 401(k) plans and other eligible individual account plans recently received some comfort from the U.S. Court of Appeals for the Fifth Circuit, which affirmed a grant of summary judgment for defendants in a class action alleging that the fiduciaries should have ceased investing plan assets in employer stock, contrary to the plan's express requirements." (Pillsbury Winthrop Shaw Pittman LLP)
[Opinion] Updated American Benefits Council Talking Points on the Offshore Nonqualified Deferred Compensation Provision (PDF)
Excerpt: "This provision should be rejected for the following reasons . . . It is extremely broad and would apply to non-abusive compensation practices. . . . It targets equity compensation. . . .It targets performance-based compensation. . . . It would create great uncertainty and would be virtually impossible to administer. . . . It is retroactive." (American Benefits Council)
[Opinion] U.S. House of Representative Committee Again Approves Restrictions on Offshore Nonqualified Deferred Compensation
Excerpt: "This week, the House Ways and Means Committee approved legislation extending corporate tax breaks for one year and paying for them by, among other things, imposing limits on offshore nonqualified deferred compensation. Although the provisions are aimed at hedge funds in low tax countries, the Energy and Tax Incentives Act of 2008 (H.R. 6049) would arguably treat stock appreciation rights, restricted stock units and other performance-based compensation as nonqualified deferred compensation under section 409A of the tax code" (HR Policy Association)
Employee Ownership Update for May 15, 2008
NCEO Executive Director Corey Rosen discusses a program in Indiana to encourage banks to loan to ESOPs; a pro-ESOP resolution in Congress; an inaccurate claim by many compensation professionals that broad-based equity plans don't work; an NCEO survey of equity compensation practices in closely held companies; and a Winning Workplaces Webinar on employee ownership. (National Center for Employee Ownership)
[Guidance Overview] Summary of FASB Statement 123R Share-Based Payment (Revised 05/08/08) (PDF)
Excerpt: "Financial Accounting Standards Board (FASB) Statement No. 123 (revised 2004), Shared-Based Payment (Statement 123R) repeals the longstanding 'intrinsic value' method of accounting for equity compensation prescribed by APB Opinion No. 25 (Opinion 25), and replaces original Statement 123 with a mandate that generally all equity awards granted to employees be accounted for at 'fair value.'" (Frederic W. Cook & Co., Inc.)
Sprint Sued for Fiduciary Breach over Company Stock
Excerpt: "A participant in the Sprint Retirement Savings Plan of Sprint Nextel Corporation has sued the company and other plan fiduciaries for continuing to offer company stock as a plan investment." (PLANSPONSOR.com; free registration required)
Merck Charged with Fiduciary Breach in Company Stock Suit
Excerpt: "A Merck & Co. 401(k) participant has charged the drugmaker with breaching its fiduciary duties by continuing to permit investments in company stock despite the effects on share price of problems with its cholesterol-reducing drug Vytorin." (PLANSPONSOR.com; free registration required)
SNSFE Investigates Claims That Brokerage Firm Employees in 401(k) Plans and Other Qualified Plans Were Not Advised of the Risk of Owning Company Stock in Light of Subprime and CDO Exposure
Excerpt: "Employee plaintiffs are lining up to sue the major brokerage firms over losses in company stock. A number of proposed class actions have been filed against Citigroup, Merrill Lynch and Morgan Stanley. According to the lawsuits, the companies made inadequate disclosures about their subprime and collateralized-debt-obligation exposure. The suits allege that by including company stock in 401(k) and other savings plans, and encouraging employees to buy shares, the firms violated their fiduciary duties to participants under ERISA." (FinancialCounsel.com)
Employee Ownership Update for May 1, 2008
NCEO Executive Director Corey Rosen discusses the NCEO's new survey of equity compensation practices in private companies and invites private companies to participate. He also recommends six principles for making messages stick (for example, in communicating an ESOP to employees). Finally, he addresses the impact of the ESOP repurchase obligation on valuation. (National Center for Employee Ownership)
Presentation: Plan Litigation and Latest Trends in Equity Compensation
Presented at the NCEO/Beyster Institute Joint Annual Employee Ownership Conference in Chicago, Illinois, April 3, 2008. (Janich Law Group)
Reliant Wins 2nd Stock Drop Case Ruling
Excerpt: "A federal judge was correct in dismissing a 401(k) participant's company stock suit because the plaintiff had not put on a strong enough case that a Houston energy firm had violated its fiduciary duties in handling the company stock fund, an appellate court has ruled." (PLANSPONSOR.com; free registration required)
When the Company Share Price Is a Factor in Compensation
Excerpt: "[47] percent of private sector employees in the United States have had at least part of their compensation tied to their company's profitability or stock price. That's right. If you include stock options, deferred stock, profit sharing or cash bonuses pegged to a company's performance, nearly half of the 114 million employees of private-sector companies had some stock or profit-related pay at the end of 2006." (The New York Times; free registration required)
Macy's Fiduciary Breach Suit Will Stay in Ohio
Excerpt: "Macy's Inc.'s motion to move a fiduciary breach suit on behalf of a class of participants in its 401(k) plan has been denied by the U.S. District Court for the Southern District of Ohio." (PLANSPONSOR.com; free registration required)
[Opinion] Does Employer Stock Even Belong in Retirement Plans?
Excerpt: "Should there even be employer securities in a 401(k) plan or other retirement vehicle? That's the million dollar question (or more like the hundred million dollar question) that cases like those arising out of the Bear Stearns collapse raise. Moreover, it goes right to the underlying tension between ERISA and the securities laws that plays out in the concept of fiduciary duty: namely, the extent to which it is appropriate for a fiduciary to continue to allow employer stock holdings in a retirement vehicle when the company is simultaneously facing market pressure on its stock price and an obligation to comply with the securities laws in dealing with the marketplace as a whole." (Stephen Rosenberg of The McCormack Firm, LLC)
PPA Increases Need to Educate Workers About 401(k) Assets in Company Stock
Excerpt: "Participants whose plans match in company stock will want investment information with which they can conclude that the company stock, as a 401(k) asset, is a good investment. Some employers are going further, though, saying, 'Maybe we will offer company stock as 401(k) investment option, but we will not match in company stock,'' says Leslie Smith, senior vice president of Aon's retirement practice. Under PPA, employees can direct company stock as a 401(k) match as they like." (Employee Benefit News; free registration required)
[Guidance Overview] 7th Circuit Applies Supreme Court's Decision in LaRue to Defined Contribution Overvalued Stock Lawsuit
Excerpt: "With the ink barely dry on the Supreme Court's opinion in LaRue v. DeWolff, Boberg & Associates, the 7th Circuit has applied it in deciding Rogers v. Baxter International Inc., No. 06-3241 (CA7 April 2, 2008). In Rogers, the 7th Circuit affirms the district court's denial of Baxter International's motion to dismiss, and remands the case to the district court for further action." (Pension Protection Act Blog)
Federal Judge Throws Out Part of RadioShack Stock Drop Suit
Excerpt: "A federal judge in Texas has thrown out part of case by 401(k) participants against RadioShack over whether the electronics retailer should have included company stock as a retirement plan investment option. U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas ruled that participants had not put forth a strong enough case to overcome the legal presumption that it was prudent to include RadioShack stock as a 401(k) investment. However, according to the ruling, Means turned aside a demand to dismiss Employee Retirement Income Security Act (ERISA) fiduciary breach allegations over the employer selecting Putnam Funds as investment options." (PLANSPONSOR.com; free registration required)
Appellate Court Allows Baxter Intl. Stock Drop Suit to Move Forward
Excerpt: "401(k) participants in a stock-drop case against medical products manufacturer Baxter International Inc. have won an important legal skirmish as a federal appellate court upheld the plaintiffs' right to sue for individual damages in a fiduciary breach suit." (PLANSPONSOR.com; free registration required)
Mutual Fund ERISA Lawsuits: DOL Gets Involved
Excerpt: "In a quiet move that many people may not have noticed, the US Department of Labor recently weighed in on the 401(k) lawsuit filed against Deere & Co. The move could have wide-ranging implications for other companies and employees involved in mutual fund ERISA lawsuits." (Online Legal Marketing Ltd.)
Can Your Long-Term Incentive Plan Become More Performance Based Again? (PDF)
Excerpt: "A top responsibility for Compensation Committees is to ensure a strong linkage between executive compensation and company performance. Long-Term Incentive Plans (LTIPs) typically provide the largest component of senior executives' compensation, most often through one or more of three equity-based types: Stock Options, Restricted Stock, and Performance Shares. This InsightOut™ assesses the relative strength of the linkages between company performance and each type of equity when included in an LTIP." (Buck Consultants)
Company Stock Exclusion not Warranted by Operational Fraud Revelation
Excerpt: "The 7th U.S. Circuit Court of Appeals has affirmed a district court ruling that Tribune Company did not breach its fiduciary duties by continuing to offer company stock as an investment in employee retirement plans during the time a fraud that occurred at a New York subsidiary was being revealed." (PLANSPONSOR.com; free registration required)
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