Incentive Compensation, Bonuses and Equity Compensation

Incentive compensation is a frequently litigated issue in employment law, particularly in the context of employee terminations.  

For senior management and executive employees, an integral part of their annual compensation is tied to the achievement of certain company and/or individual performance metrics over the short and long term.  This can include a combination of short term incentive pay (STIP), long term incentive pay (LTIP), bonus, restricted share units, performance share units, options, or equity awards.

Legal claims in connection with incentive and equity compensation entitlements can be significant, which is why it is critical for the employer to create clearly defined eligibility criteria, payment conditions, vesting requirements if applicable, and most importantly, set forth clear terms regarding the treatment of incentive compensation upon termination of the employment relationship.  Failure to adequately or clearly define these items can expose an employer to significantly more liability than originally contemplated during contract negotiations.  Our Team at JPAK Employment Lawyers has over 15 years of expertise in drafting compensation plans, advising and representing clients in connection with incentive and executive compensation issues.  Ensure that your organization is getting the right strategic advice and representation to best achieve your strategic objectives and minimize exposure to liability.  Contact us today at :  info@jpakemploymentlaw.com or call us at 416.583.1920.