BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Wednesday, August 23, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00

This CLE/CPE will provide executive compensation and employee benefits attorneys an in-depth analysis of the rules and key considerations for incorporating restricted stock units (RSUs) in long-term incentive compensation plans. The panel will discuss the advantages and disadvantages of accelerating equity awards, key tax issues and planning techniques, restrictions under Section 409A, and other critical structuring considerations for employers.

Faculty

Mort Marshall
Shareholder
Fenwick & West LLP

Mr. Mort focuses his practice on representation of public and private technology and life sciences companies in a wide variety of corporate transactions. He advises on the issues that regularly arise with equity plans, executive compensation agreements and other employment benefit arrangements when clients are involved in mergers, acquisitions, public securities offerings, onboarding and terminations.

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Lampron Shawn
Shareholder
Fenwick & West LLP

Ms. Lampron focuses her practice on executive compensation and employee benefits for emerging growth businesses, public companies, and venture and institutional investors. She works with clients to structure compensation and benefit programs covering the full spectrum of equity and cash compensation arrangements, including all types of employee stock options, restricted stock, employee stock plans, employment agreements, deferred compensation, and other fringe benefit arrangements. Ms. Lampron was most recently part of the team that represented Fitbit in its $732 million IPO in June 2015.

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Description

RSUs continue to be a popular form of equity compensation, mostly due to their flexibility. Executive compensation and benefits attorneys must have a clear understanding of applicable federal tax rules and restrictions regarding the inclusion of RSUs when structuring compensation plans.

RSUs represent a contractual right to a certain number of stock shares, or cash payment of equal value, to an employee subject to a vesting schedule. The shares, or the cash equivalent, are not delivered until vesting and forfeiture requirements are satisfied, and the holder has no voting rights during the vesting period.

RSUs are taxed as regular income, making the terms of any vesting schedule a key item to consider for both employers and employees. However, the taxation of RSUs can be deferred even after vesting, allowing the employee to coordinate the timing of tax recognition. Any deferral must comply with Section 409A. Any failure to do so can cause immediate taxation upon vesting and subject the recipient to an additional 20 percent income tax and penalties.

Listen as our panel discusses the challenges of incorporating restricted stock units in compensation plans, available planning techniques, restrictions under Section 409A, and other critical structuring considerations.

Outline

  1. Incorporating RSUs in compensation plans
  2. Tax issues and recent IRS guidance
  3. Accelerating equity awards
  4. Best practices for attorneys representing the employer or employee

Benefits

The panel will review these and other key issues:

  • What are the key items to consider for incorporating RSUs when structuring compensation plans?
  • What are the key tax issues and available planning techniques to minimize them?
  • What are the restrictions under Section 409A?
  • What are the advantages and disadvantages of accelerating equity awards?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Understand key tax items to consider for incorporating RSUs when structuring compensation plans
  • Recognize key tax issues and available planning techniques to minimize them when incorporating RSUs in compensation plans
  • Understand the restrictions under Section 409A
  • Recognize the tax implications of accelerating equity awards

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).