2A - Awarding Employees “Almost” Equity: Phantom Stock/Equity Equivalent Agreements; Options; Deferred Compensation (ELE230330-2A)

Thursday, March 30, 2023

11:40 AM to 12:55 PM

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2A - Presented by the Labor & Employment Law Section

About the Program

In closely held private businesses and startups, employers often want to provide key employees the economic benefit of equity ownership without giving the employee actual equity and the accompanying rights as a minority owner.  Employers may accomplish this by establishing a phantom stock or stock equivalent plan or agreement.  Learn the key terms and provisions for such agreements from both the employer and the employee’s perspective.  Among the topics to be covered will be basic tax considerations including 409A deferred compensation rules, considerations concerning how to structure the plan to further the company’s goals and reduce the chance of employees gaming the system, and strategies to protect employees from unfair forfeitures or provisions that deprive the employee of a realistic opportunity to benefit from the plan.  Phantom Stock Plans will be compared to stock option plans and deferred compensation plans, and the basics of each of those types of plans and their related tax issues will also be addressed.  The program will not address issues with publicly held companies.

You Will Learn

  • The key business terms and tax considerations for phantom stock agreements and stock equivalency plans from the employer and employee perspective.
  • The basics of option awards and deferred compensation plans.

Who Should Attend 

Lawyers who negotiate employment agreements on behalf of employees or employers; lawyers who provide human resources advice to privately held companies; in-house counsel for privately held companies.

CLE Credit

CT: 1.25 CLE Credits (General)
NY: 1.5 CLE Credits (AOP)

The Connecticut Bar Association/CT Bar Institute is an accredited provider of New York State CLE. This program qualifies for newly admitted and experienced attorneys CLE credits. 

Attorneys seeking NY CLE credit who have been admitted to the New York State Bar for two years or less must attend the live seminar for skills or ethics credit, a fully interactive videoconference, or simultaneous transmission with synchronous interactivity. Diversity, Inclusion and Elimination of Bias CLE credits are only available as non-transitional credits. For further information please see the NYCourts.gov page on CLE: http://ww2.nycourts.gov/attorneys/cle/index.shtml. 


Daniel Fitzgerald1 Daniel B. Fitzgerald
Brody Wilkinson PC, Southport

David Rintoul1 David S. Rintoul
Rintoul Law LLC, Wilton

Ryan Sheppard1 Ryan C. Sheppard
Rolleri & Sheppard CPAS LLP, Fairfield