June 2, 2021
Chart: How Deal Structure Affects Pay Arrangements
This Foley & Lardner blog explains how three typical deal structures – stock purchase, asset purchase, and carve-out – affect executive comp & employee benefits strategies. For each type of transaction, the chart shows:
1. Will the benefit plans & compensation arrangements come with the transaction?
2. Will employees and employment agreements come with the transaction?
3. What happens to the 401(k) plan?
4. What happens to non-qualified retirement plans?
5. What happens to equity awards?
6. Does the structure impact how/whether Code Section 280G (“golden parachute rules”) applies?
7. What happens to group health plans?
8. What about flexible spending accounts (FSAs)?
9. What about accrued vacation or bonus liabilities?
– Liz Dunshee