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Effect of New FTC Rule Banning Post-Employment Non-Compete Agreements on Executive Compensation Arrangement
King & Spalding 
[Guidance Overview] May 20, 2024 "If it becomes effective, ... the final rule may cause employers to move towards ... [1] Longer time-based vesting periods. [2] More cliff-based vesting or otherwise requiring workers to be employed at payment to earn a benefit and forfeiture of benefit upon terminations prior to such time. [3] More 'buy outs' as replacement compensation for forfeited equity and incentive compensation for new hires as a result of the above. [4] 'Garden leave' replacing severance." |
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