News & Analysis as of

Stock Options Employment Contract

Foley & Lardner LLP

Tricky Compliance Issues for Companies When an Executive Terminates Employment: Stock Options, Restricted Stock, and Other Equity...

Foley & Lardner LLP on

Executive employment relationships are rarely permanent. When an executive or other senior-level employee terminates employment, companies often must deal with difficult tax, equity, and benefits issues that arise in...more

Stikeman Elliott LLP

Status Update: Ontario Court Upholds RSU Forfeiture Provision, Despite Employment Agreement Violating the ESA

Stikeman Elliott LLP on

In the recent Wigdor v Facebook Canada Ltd. and Meta Platforms, Inc., 2025 ONSC 4051 decision (the “Decision”), which has not yet been reported, the Ontario Superior Court of Justice upheld the enforceability of restricted...more

Morgan Lewis

German Federal Labor Court Strengthens Employee Rights for Virtual Stock Options upon Employment Termination - Legal Insights...

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In its ruling dated March 19, 2025, the German Federal Labor Court (BAG)—in contrast to the two previous instances and contrary to its previous case law—deemed an expiry clause in general terms and conditions to be...more

Orrick, Herrington & Sutcliffe LLP

#ESOP: How to Deal with the New Case Law on the Forfeiture of Vested Virtual Shares – A Practical Update for Employers and...

Incentive programs like an employee stock option plan or a virtual stock option plan ("VSOP") are widely used by young technology companies ("Company") to reward and retain talent ("Beneficiaries"). A key feature in these...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

German Federal Labor Court Finds Certain Virtual Stock Option Forfeiture Clauses May Unreasonably Disadvantage Employees

On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht or BAG) held in Case No.: 10 AZR 67/24 that certain forfeiture clauses in General Terms and Conditions of Business (Allgemeine Geschäftsbedingungen or...more

Orrick, Herrington & Sutcliffe LLP

Lapse of Virtual Stock Options in the Event of Voluntary Resignation – Good Leaver or Bad Leaver?

On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht) ("FLC") ruled that a provision in an employee stock option plan providing for the immediate forfeiture of vested virtual stock options in the event of...more

Orrick, Herrington & Sutcliffe LLP

Verfall von virtuellen Optionsrechten bei Eigenkündigung – Good Leaver oder Bad Leaver?

Das Bundesarbeitsgericht (BAG) hat am 19. März 2025 (10 AZR 67/24) entschieden, dass eine Regelung in einem Mitarbeiterbeteiligungsprogramm unwirksam ist, die einen Verfall von gevesteten virtuellen Optionsrechten bei einer...more

Littler

French Supreme Court Holds Stock Options and RSUs Are Excluded from the Calculation of the Dismissal Indemnity

Littler on

For several years, the French Supreme Court has been uncertain regarding the inclusion of stock options and restriction stock units (RSUs) in the termination indemnities (severance and notice period payment) calculation base....more

Epstein Becker & Green

5th Circuit Upholds Non-Compete Provision Despite Former Employee’s Forfeiture of Stock Options, Which Constituted Express...

Epstein Becker & Green on

On April 27, 2020, the U.S. Court of Appeals for the Fifth Circuit affirmed a lower court’s decision to grant a preliminary injunction preventing a real estate agent from working for a competitor, because her non-compete,...more

Verrill

Executive Decisions – Putting in Place Effective Employment Agreements for Company Executives

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During this webinar, attorneys Doug Currier and Scott Connolly discussed best practices for putting in place effective executive employment agreements, including inbound agreements and separation agreements. Topics discussed...more

Sunstein LLP

August 2018 IP Update - Non-Competition Agreements: Massachusetts Meets California Halfway

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California has long led the nation in its disdain for noncompetition agreements. Pressed by venture capitalists who believe that this gives California an advantage over other states, the Massachusetts legislature has finally...more

Bowditch & Dewey

C-Suite Employment Contract Clauses Companies and their Boards Must Consider in the Wake of Weinstein

Bowditch & Dewey on

The Harvey Weinstein scandal has struck a nerve in American society and empowered individuals to speak out about sexual harassment and retaliation in the workplace. The nation appears to be at a tipping point, with...more

Fox Rothschild LLP

Trigger Vs. Double Trigger: What A Cowboy Needs To Know About Golden Parachutes

Fox Rothschild LLP on

This is actually about executive compensation. Not just any executive but senior, senior executives. If you have not noticed, we live in a brave new world where many public companies are seeing large blocks of their stock...more

Spilman Thomas & Battle, PLLC

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Morrison & Foerster LLP - Social Media

Court Upholds Enforceability of “Clickwrap” Employee Agreement

As we have previously discussed, if you want your electronic contracts to be enforceable, it is a best practice to require the counterparty to affirmatively accept the contract by checking a box or clicking a button. A recent...more

McDermott Will & Emery

Ruling on UK Executive’s Lawsuit Involving U.S.-Based Stock Option Plan

McDermott Will & Emery on

English executives employed by multinational companies often have a contract of employment with the company’s UK subsidiary, but may also participate in a separate bonus or share option plan that contains foreign (e.g., U.S.)...more

Laner Muchin, Ltd.

Companies Should Monitor Deferred Compensation Arrangements For Section 409A Compliance Purposes

Laner Muchin, Ltd. on

Given the complexity of the rules under Section 409A of the Internal Revenue Code, which govern the timing and taxation of payments made under non-qualified deferred compensation arrangements (NDCAs), companies are encouraged...more

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