Many companies struggle with how to best compensate and incentivize their key employees. Salary and short-term bonuses alone may not be sufficient. Many key employees seek to be rewarded for their long-term efforts and to share in any increase in value of the company. Andy Jacobs takes a look at the most common means adopted by companies in this Stites & Harbison Client Alert.

In recent years, we have seen more and more ERISA class action claims against retirement plan sponsors and committees for breach of fiduciary duty. In the past, such claims were generally only made against very large plans but we are starting to see claims against smaller plans. The primary allegation is often that the fiduciaries failed to seek the lowest fees available or put another way the fiduciaries were “asleep at the wheel.” By one report, 463 lawsuits have been filed over the last eight years claiming fiduciaries failed to obtain the lowest available fees. Lexington office attorney Andy Jacobs takes a look at the issues in this Stites & Harbison Client Alert.

An extraordinary performance-based stock option plan (the “Grant”) awarded by Tesla, Inc. (“Tesla”) to Elon Musk (“Musk”) was invalidated by the Delaware Court of Chancery last week, despite the fact that over 70% of Tesla’s disinterested stockholders approved it at a 2018 special meeting. Attorney Brian Cromer takes a look at the decision in this Stites & Harbison Client Alert.