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“Waterfall Distribution” – What’s That? The Private Equity Pitch to Employees

Sklover Working Wisdom

The Private Equity Pitch to Employees. “In The “Private Equity Pitch” to Employees: More and more employees are finding their employers being purchased by Private Equity investors. It “just” requires commitment, lower salaries, diminished benefits, and a whole lot of blind faith.

Equity 130

“Umbrella Negotiating” – Best Response to Private Equity “Hurricane Tactics”

Sklover Working Wisdom

After three generations of family ownership, during which the staff grew from two to 150, the grandchildren-owners received an inquiry from a Private Equity firm about their interest in possibly purchasing the company. Pretty soon, the Private Equity firm, their lawyers and their accountants began reviewing the company’s financial records, bank statements, leases, employment agreements, all as part of their “due diligence,” upon which their formal “offer” would be based.

Equity 100
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Long Term Incentive Compensation: 10 Basic Concepts

Sklover Working Wisdom

Frankly, we expected that Kathy, as a Human Resources professional, would have – or should have – known about the basic mechanisms of her long-term incentive compensation. Nor are the problems derived from Benefits and Compensation failing to provide our clients with all necessary calculations. Let’s take a few minutes to make sure you understand the basic concepts of long-term incentive compensation: 1. Equity ” – “Equity” is a rather broad concept.

“Private Equity Buying Your Employer? Resist These 11 Employment Negotiation Tactics”

Sklover Working Wisdom

ACTUAL “CASE HISTORIES ”: For many years I have counseled and negotiated on behalf of employees when their employers (a) are being purchased by Private Equity investors, (b) are owned by Private Equity investors, and (c) are being sold by Private Equity investors. I’ve also represented employees being recruited to work for Private Equity-owned employers, commonly referred to as Private Equity “Portfolio Companies.”. Benefit Reductions and Compensation Redesign.

Equity 109

“Your Best Time to Beat a Non-Compete”

Sklover Working Wisdom

They were in the business of “hats to shoes,” and everything in between, making Geraldine’s non-compete agreement quite a problem. . And, too, every recruiter and employer asked the same two questions during Geraldine’s new interviews: “Did you sign a non-compete agreement?” By this I mean (i) salary, (ii) bonus opportunity, (iii) possibility of equity, (iv) title, vacation and the like. When do various benefits start?

“Employer’s Sole Discretion” in Contracts, Handbooks and Compensation Plans: Six Strong Arguments to Defeat It

Sklover Working Wisdom

On this basis, Brandon felt confident he would achieve an overall increase in compensation. The company Bonus Plan provided that any issues as to eligibility, entitlement or calculation of bonuses would be “determined with finality by the Company Compensation Committee in its sole and absolute discretion.”. Brandon’s attorney helped him appeal these decisions to the Company Compensation Committee. “Everyone is entitled to their own opinion.

Offer Letter or Company Plan – Which One Governs?

Sklover Working Wisdom

When Lemuel insisted on an explanation, she responded, “Your Offer Letter stated clearly ‘Your compensation consists of a base salary, an annual bonus and health care coverage. No other compensation is being offered to you. To receive any additional form of compensation, you and an authorized representative of the Company and you must sign another document that provides that to you.”. Want a Benefit or Better Benefit?

2017 100

“Need a Work Document from HR? Afraid to Ask? – Here’s How”

Sklover Working Wisdom

A head’s up: If an employer is seriously interested in hiring you, they may want their own lawyer to review your existing employment agreement, non-compete agreement, stock option plan, or other workplace document. “A secret spoken finds wings.”. – Robert Jordan.

2021 130

RSU’s: Restricted Stock Units – 8 Essential Insights

Sklover Working Wisdom

The salary, bonus and benefits she was offered by each were considerable. In recent years, we’ve helped a significant number of employees who were offered or granted employee compensation in the form of “Restricted Stock Units” (“RSU’s,” for short.) Some of our clients have been very pleased with the significant compensation they have achieved through grants of Restricted Stock Units. Non-Compete Agreement? “The large print giveth and the small print taketh away.”.

2019 100

“Employer Ask You to Sign an Agreement? Ask Your Employer to Pay Your Legal Cost”

Sklover Working Wisdom

Rumor had it that a private equity firm might be interested in buying Charlene’s employer, and it was for this reason that a new, revised Confidentiality and Inventions Agreement was being required.). Expect a fee on the higher side if your agreement refers to or “incorporates by reference” any other agreement or benefit plan, as this would require that each of these other agreements be reviewed, as well, because they hold meaning in the interpretation of the original agreement.

2015 118

Offered a Position and Shares in a Start-Up? – 10 Traps in the Legal Papers, and Your Ways Out

Sklover Working Wisdom

He was recruited away by a competing start-up publication, induced to leave his employer of many years by a promise of great wealth to be achieved through his becoming a minority shareholder of the new or young company. On a salary lower than he was used to, and minimal benefits, he built quite a powerhouse in just a few years. As part of the compensation package, they are offering me shares or units in the new or young company. Asked to sign a non-compete agreement?

2016 100

“When laid off, can I get my unvested options vested?”

Sklover Working Wisdom

I am currently employed by a large tech company and I have received equity compensation throughout my tenure. Some of this equity has yet to vest. My experience is that a great many “equity” plans provide for continued vesting so long as the employee is terminated without cause, and the employee does not compete directly or share confidential informatio n. By “equity” I refer to stock, stock options and other securities of a company. Question: Hi, Alan.

2013 109

FMLA – Great Tool to E-x-t-e-n-d Employment

Sklover Working Wisdom

Aquilino, Margaret and Kevin each spoke to their family members’ therapists, doctors and health care providers, who in each case were willing to certify that each of their respective loved ones would benefit by having him or her spend more time with their loved one. In general, a FMLA leave of absence is unpaid, but employee benefits should continue during your leave. “ The cure for anger is delay.”. – Seneca.

2016 100

“Can I solicit customers of my former employer?”

Sklover Working Wisdom

Answer: Dear Tom: As explained below, soliciting your former employer’s customers and even its employees, and competing with your ex-employer in every other way, is not “unlawful.” You are entirely free to solicit your former employer’s customers and staff, and compete with your former employer in every other way. BUT you are not legally free to do so if you have signed a valid and binding non-solicit or non-compete agreement.

2013 118

“Garden Leave’s Little Secret: It is Not Very Enforceable”

Sklover Working Wisdom

As we do for all of our clients, we asked Carolyn to send to our office all of her “workplace papers,” including offer letter, all agreements signed, employee handbook and benefit and equity plans and agreements, for review prior to our consultation. . During that period we will pay your salary and provide benefits, but not accrued vacation, sick days or bonus. Here’s 18 Smart Steps to Guide You. Complexity (at work) has opened a great divide between.

2013 116

Another Chain Broken:

Sklover Working Wisdom

Effective This Week: Another client is free from the “chains” of a non-compete or non-solicitation restriction. Here’s what happened: The Case: Our client, a commissioned salesperson in the petrochemical industry in the Southwest, was quite dissatisfied by a sharp reduction in his sales commission plan, put into effect with little notice, after the company changed hands to a Private Equity group. Fear is what makes non-compete and non-solicitation agreements work.

2016 133

Two (or More) Job Opportunities? – 18 Elements of Comparison – [Part 1 of 2]

Sklover Working Wisdom

Without her reaching out, she was contacted by a recruiter with a very intriguing opportunity, with (a) better salary, (b) but lower bonus opportunity, (c) greater retirement benefits, but (d) later retirement age, (e) a new, exciting product line to market, but (f) a small marketing budget that gave her limited discretion. For example, in some industries, base salary is only 10% of overall yearly compensation. Example: What are the tax ramifications of being awarded equity?

2018 100

Promise Received at Work? Ask These Two Critical Questions

Sklover Working Wisdom

Without her seeking it, one of the company’s vendors made her a job offer with greater compensation and a clear career path to executive level responsibilities. Want to Ask for Equity from Private Equity or other Private Owners? Use our “ Model Letter for Requesting Management Equity from Private Equity or Other Private Owners. Those in need of legal advice, counsel or representation should retain competent legal counsel licensed to practice law in their locale.

2018 100

“Side Letter” – Use to Amend “Standard” or “Existing” Agreements

Sklover Working Wisdom

Employer’s Successors Bound, Too: It is wise to mention in the Side Letter that it is binding on both parties’ successors and those to whom they may assign the benefit of the Main Agreement. “If you can’t change your mind, then you’re not using it.”. – Bashar Kushandwizdom.

2020 130

Know Who Your Employer Is? – You May Be Wrong.

Sklover Working Wisdom

The implications could be huge, including your job security and rights to benefits, compensation, and stock or stock options. An employer may provide generous benefits, pensions and even stock options TO ALL of their employees – but NOT TO SOME of their employees – at the same time. All of Skibiski Lumber, Corp’s employees – all six of them – are enrolled in the benefit, pension and stock option programs. “During the day, I don’t believe in ghosts.

2017 100

How to Attract Top Talent in a Competitive Market

Corn on the Job

In the United States, one start-up founder is competing with the likes of Google and Facebook to attract top talent to his business. After all, you can’t expect to be able to compete for the best candidates if you don’t offer the type, and level, of compensation that potential hires value.

2014 66

“Survivor Demotion” – When a Lower Level Job Is Preferable to Layoff

Sklover Working Wisdom

Bearing in mind his age and the poor job market, as well as the fact that his hefty compensation package made him a likely target for budget-cutting, Howard and his wife consulted us to determine a best course of action. It’s simply undeniable that in many situations, people of greater talent and experience – but unfortunately for them, higher compensation – are probable candidates for layoff. . “It is not necessary to change. Survival is not mandatory.” . - W. Edwards Deming .

Layoff 116

Confidentiality and Non-Disclosure Duties – The Four “Situational Exceptions”

Sklover Working Wisdom

Although that definition may seem overly complicated and wildly expansive, it is actually a simpler version of what we usually find in employment agreements, equity awards, employee handbooks, and company policies. To permit those secrets to be shared, it is almost always required that the prospective purchaser sign a Non-Disclosure Agreement, commonly called and “NDA” in which it agrees not to share the information with others, or use the information for their own benefit.

2016 100

When Leaving Your Job, How to Take Your Colleagues With You

Sklover Working Wisdom

Martina’s job was to create a “culture of innovation,” to the benefit of all, which she did with passion and success. To view our Newsletter entitled, “Hidden Handcuffs, Buried and Disguised Non-Compete’s” click here.] There are myriad ways to offer “equity,” from partnership to stock ownership to “your name on the door.” The sweet siren song of equity cannot be underestimated. Salary, Raise, Bonus, Compensation G. Benefits, Pensions and Perq’s H.

2010 116

“How should I ask for a retention bonus?”

Sklover Working Wisdom

The lesson is this: In proposing a retention bonus or agreement to your employer, you should first emphasize (a) why it would be in the interests of the employer, and, then (b) what benefit will come about to the employer if it offers the retention bonus. i) If you believe your remaining on board, and then losing your job, could result in your having to seek work for 6 months, then perhaps the value of six months of salary and benefits would be “reasonable.” (ii)

2013 116

The Bill O’Reilly Debacle – Its Most Important Negotiating Lesson for Employees

Sklover Working Wisdom

Among those who have practiced employment law for many years, first contacting Human Resources has come to be near universally recognized as a serious strategic mistake, as the real function of Human Resources is to “manage human resources” for the benefit of management and, in turn, the shareholders. Employers have capital resources, facilities resources and “human resources” that are all to be utilized to their greatest benefit to the shareholder.

2017 100

Growing Business Need Funding? Think “S.L.I.C.E.”

Sklover Working Wisdom

Short term investors – and I put private equity investors in that category – seek to (a) buy in, (b) fix up, and then (c) sell out to someone else in a 3-year to 5-year timeframe. Your best affiliations may be with, as examples, (1) a natural food distributor that wants to appeal to younger people, (2) a clothing designer looking for a touch of rhythm, (3) even manufacturers of sneakers, vodka and private jet leasing companies might find an affiliation of mutual benefit.

2016 109

How To Recruit On LinkedIn, Fast, Without Breaking The Bank

Workology

What I am about to unveil is a working strategy with proven results to recruit premier candidates, both technical and non-technical, as an educational guide for talent acquisition professionals and hiring managers who compete for top talent with limited resources and limited time. Here is an example of a data-driven title that people appreciate: $180K + Equity + Mountain View, CA + Principal Software Engineer + Full Benefits + VISA Sponsor.

2016 50