27 Jun 2023

Now Trending: Using Market Standards for EBEC Considerations in Corporate Transactions: 2023 Q1 Report

Corporations involved in mergers and other corporate transactions vary their treatment of outstanding equity awards to their C-suite executives. This includes how they handle vested and unvested outstanding equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units (RSU), RSUs subject to performance criteria, and deferred stock units. Read this practice note to see the trends in what’s been done in the first quarter of 2023, and the accompanying language.

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Learn more about how to handle outstanding equity in a corporate transaction. In broad terms, outstanding target equity awards may be handled in two ways: (1) the acquiror can assume them and they can remain outstanding following the closing of the transaction, or (2) they can be cancelled at the closing of the transaction, presumably in exchange for a cash payment.
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Refer to this resource kit and review how corporate transactions, regardless of size, implicate various employee benefits and executive compensation issues.

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