Ask The Attorney

John G. Ferreira

John G. Ferreira
Morgan, Lewis & Bockius, LLP
Pittsburgh, PA
Telephone:  412 / 560-3350
E-mail:  jferreira@morganlewis.com
Web site:  morganlewis.com




Select a Question:






Under our stock option plan, options can be exercised before the normal vesting date, with employees receiving restricted shares with a similar vesting schedule. Will this cause option income to be counted for determining overtime pay?




Our option plan gives the Compensation Committee the discretion to accelerate vesting when employees terminate with unvested options. The Committee has done this on a number of occasions. Any problems?




Our company has a confidential policy of paying severance on occasion to terminated employees, subject to certain unpublished written guidelines. Is this policy a plan regulated by ERISA?




My company lets employees use a recourse note, instead of cash, to exercise options. What risks are there in using such a note?





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