Tailoring compensation programs to fit each client's particular situation while emphasizing relevant tax issues is the key to sound, effective programs.

We regularly design and advise clients on incentive stock options, non-statutory stock options, restricted stock, stock appreciation rights, phantom stock and dividend equivalent rights programs. We perform reviews to ensure that our clients satisfy applicable securities laws. We also design supplemental executive retirement plans, retention programs, success fee plans and deferred compensation plans that are funded by employer stock.

Some employers do not want to issue equity compensation to employees, but want to tie employees' incentive compensation to increases in the company's value; for these clients, we design alternatives. Our team has designed phantom stock plans, stock appreciation right plans and other creative alternatives.

Together, we have:

• Designed a stock option plan for a pre-IPO company that could be used after an initial public offering to grant stock options and other equity incentives to employees in the U.S. and three European countries. We worked closely with our securities lawyers and foreign counsel to address applicable tax and securities issues
• Assisted a client in implementing a stock option deferral program for a closely held business
• Represented a Fortune 500 company in developing a program to replace underwater options while limiting adverse tax, accounting and securities law consequences
• Helped the U.S. affiliates of a Japanese multinational corporation develop an option compensation program in which the employer grants employees rights to purchase property other than employer stock. (This type of program is attractive to an employer that does not want to use its own stock as compensation currency and, because of the diversification opportunities that it provides, has proven attractive to option recipients.)
• Represented a Fortune 500 company in establishing worldwide stock option and stock purchase programs