Employment Lawyers in Philadelphia: Executive Compensation and Benefit Packages
Navigating the intricacies of federal tax, securities and employment law can be difficult for both the employer and employee. Not only must companies disclose the salary and benefits received by their highest-level executives, they must also reconcile their compensation practices with corporate performance and reveal the criteria used for making individual executive compensation decisions. For these reasons, executive compensation and benefit packages must be properly structured from the start.
Philadelphia employment lawyers at Sidney L. Gold & Associates have extensive experience guiding their corporate clients through this complicated process, lessening the likelihood of controversy down the road. We stay on top of regulatory and market developments for our clients.
Executive Compensation Lawyers in Philadelphia review all Executive Compensation Options
Non-Qualified Deferred Compensation
When a non-qualified deferred compensation plan is offered, for example, income earned in one year is paid out in another. Such arrangements not only provide an executive with future financial income, but also an interest-accruing tax deferral. The executive receiving a non-qualified deferred compensation plan is unlimited by the amount or type of compensation that can be deferred – including bonuses – and the funds may be accessed pre-retirement. However in the event of a corporate bankruptcy, an executive may see his or her tax-deferred earnings vanish overnight.
Long-Term Stock and Cash-Based Incentives
Executives who have been presented with long-term stock and cash-based incentives should also seek the advice of an experienced Philadelphia employment lawyer. Although such arrangements often prove lucrative, fluctuations in the stock market or problems with an under-performing product can leave an executive financially vulnerable through no fault of their own. The Pennsylvania executive compensation lawyers at Sidney L. Gold & Associates will fight tirelessly to ensure that you receive the compensation you deserve.
Severance agreements require close scrutiny. At Sidney L. Gold & Associates, we will give you a better understanding of the real-world implications of your severance package, including non-solicitation and non-compete restrictive covenants which may dramatically affect your ability to start over elsewhere. If you are already an outgoing executive with no severance agreement in place, it is imperative that you retain counsel. You may already be entitled to severance benefits pursuant to the Employee Retirement Income Security Act (ERISA), or our Philadelphia employment lawyers can assist you in the negotiation of a new severance package.
Executive Health Care Coverage
Executive health care coverage has recently changed with the enactment of the Affordable Care Act (ACA.) Although historically certain corporate “highly compensated individuals” (HCIs) were offered enhanced or supplemental fully-insured health benefits – even after termination – the ACA requires that those benefits comply with the same non-discrimination rules already applied to self-insured plans. According to IRS code, an HCI is defined as one of the five highest paid officers, a shareholder owning more than ten percent of the stock of an employer, or among the highest paid 25% of all employees.
Executive Compensation and Benefits are Closely Scrutinized
When agreeing to take over the helm at a new company an executive assumes a wide range of responsibilities. In return, that executive is often offered a wide range of compensation and benefit options. In light of the recent economic downturn, however, compensation and benefits for executives have never been more closely scrutinized. Shareholders, the public at large, and various state and federal statutes now demand better accountability and greater transparency.
Types of Compensation and Benefits Packages
- Deferred Compensation
- Equity and Stock
- Equity Compensation
- Expatriate Benefits
- Retirement Benefits
- Section 409A of the Internal Revenue Code for Deferred Compensation Rules
- Section 280G and 4999 of the Internal Revenue Code
Philadelphia Employment Lawyers at Sidney L. Gold & Associates Protect the Interests of Executives
At Sidney L. Gold & Associates, our experienced team of Philadelphia business lawyers will carefully review a proposed executive compensation and benefits package. We will negotiate on your behalf, to ensure that you are fully compensated in the event of a termination. Before signing on the dotted line, contact us online or call 215-569-1999 to schedule a free consultation in our Philadelphia office, where we serve clients throughout Southeast Pennsylvania and New Jersey.