Equity Incentives

Super Voting Stock: The Advantages and Pitfalls

The idea of so-called super voting stock can be appealing to founders concerned about losing control of their company....

Credit Karma Hit With $160K Fine For Stock Option Failures

Credit Karma, a San Francisco fintech company, recently agreed to pay a $160,000 penalty to settle charges from the...

Jul 22 · 1 min read >

Encouraging Employee Ownership: Rule 701 and the Growth Act

The Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law last month, provides modifications for...

Jun 23 · 41 sec read >

Director Compensation Pursuant to Discretionary Equity Plans are Reviewed Using the Entire Fairness Standard

The Delaware Supreme Court recently overturned a lower court’s decision to dismiss a stockholder derivative suit against the directors...

SEC Committee Recommends Changes To Simplify Rule 701

Earlier this month, the Securities and Exchange Commission Advisory Committee on Small Businesses heard a presentation on Rule 701...

Oct 17 · 2 min read >

Registration Rights: What You Need To Know

Under federal law, securities can only be offered or sold pursuant with a registration statement filed with the Securities...

Delaware Ruling Provides Cautionary Tale Against Favoring Preferred Stockholders

In a recent decision, the Delaware Court of Chancery refused to dismiss a breach of fiduciary duty claim accusing...

Delaware Chancery Court Dismisses Suit Challenging Board Compensation Awards

A Delaware Court of Chancery judge recently dismissed a stockholder derivative suit against the directors of Investors Bancorp alleging...

Phantom Stock: An Attractive Incentive With Some Potential Pitfalls

Phantom stock can be a good alternative to issuing actual stock, allowing companies to compensate and incentivize key employees...