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Equity-Based Compensation: An Overview

"Are there forms of equity compensation that are tax-advantageous or disadvantageous to employees or employers? ... Does equity-based compensation require registration or notice? Are exemptions, or simplified or expedited procedures available? ... Are there tax withholding requirements for equity-based awards? ... Are inter-company chargeback agreements between a non-local parent company and local affiliate common? What issues arise? ... Are employee stock purchase plans prevalent or available? If so, are there any frequently encountered issues with such arrangements?"

Supreme Court to Consider ERISA Preemption of State Health Care Reporting Requirements

"This issue is important to the business community because of its potential to subject plan administrators to a multiplicity of burdensome state reporting requirements ... Even on its own, Vermont's reporting scheme imposes a litany of complex requirements on ERISA plans, including rules governing the content, timing, coding, and encryption of the reports. And as explained in the petition for certiorari, a ruling in this case could potentially impact the reporting requirements of at least sixteen states -- plus others that are considering similar legislation." [Gobeille v. Liberty Mutual Ins. Co. (2d Cir. Feb. 4, 2014, cert. pet. granted June 29, 2015)]

D.C. Circuit Rejects Freestanding Rule Against 'Fail-Safe' Classes

"Instead of what it described as an 'extra-textual' limitation on class certification, the D.C. Circuit held that the existing requirements of Rule 23 (and a district court's discretion to alter proposed class definitions) should be used to prevent certification of fail-safe classes.... [T]he D.C. Circuit was faced with an ERISA class action, in which the plaintiff sought to certify a proposed class of current or former employees of the defendant (or their beneficiaries) who had 'been denied vested rights' to retirement benefits." [In re White, No. 22-8001 (D.C. Cir. Apr. 4, 2023)]