The Advisors' Blog

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