Cash-poor employers have options; before giving employees a piece of the pie, company founders should know all ramifications
Article Abstract:
Employers in start-up companies can use various equity-based incentives to compensate employees, the stock bonus, the opportunity to buy equity in the company at a discounted rate, stock options or the stock appreciation plan. Employees who receive such benefits may be entitled to information about the company's financial condition and investment risks, information which they would not normally receive. Employers who have given these benefits may become frustrated when they want to take later take an action such as sellin g the business and find employee/shareholder consent is necessary. Other related factors are covered.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Domestic-partner benefits plans raise legal issues; employers need to consider local laws, discrimination liabiliity, COBRA rights and tax issues in implementing these benefits
Article Abstract:
Domestic-partner benefits have been offered in technology-oriented industries, including the computer software and telecommunications industries, since the early 1990s, but the late 1990s have seen such benefits are spreading to other industries as well. The threshold question is the obligation of the employer to offer such benefits, and this may arise from state law, local ordinance, or the employer's own policies. Privacy issues, COBRA issues and tax matters can be added complications.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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