Executive Compensation, Employee Benefits and Taxation

Luse Gorman assists our clients in all aspects of their employee, management and director stock and non-stock benefit plans, including drafting and negotiating executive employment agreements, tax planning, advice with respect to benefit plans, implementing stock-based executive compensation plans, tax-qualified retirement plans (such as employee stock ownership plans or “ESOPs”), defined benefit pension plans, profit sharing and 401(k) plans, and non-qualified deferred compensation plans (such as executive salary continuation plans and supplemental executive retirement plans). A significant part of our practice involves advising financial institutions and other companies regarding executive compensation and employee benefit plan strategies in connection with mutual-to-stock conversion or acquisition transactions. In addition, we work with our clients to design flexible benefit plans (also known as cafeteria plans) that offer health care premium conversion options, dependent care assistance programs, medical expense reimbursement accounts, or other valuable employee benefits. We also advise clients with respect to the health care coverage continuation requirements implemented under the Consolidated Omnibus Budget Reconciliation Act of 1985.

Our goal is to work with our clients not only by designing and implementing the plans, but also by providing advice on an ongoing basis with respect to the federal tax and regulatory requirements of the benefit programs (including the performance of compliance audits to ensure compliance with the extensive and complex requirements of the Internal Revenue Code and the Employee Retirement Income Security Act), as well as working with clients during mergers and acquisitions to facilitate the coordination of the benefit programs offered by the unrelated entities. Because employee benefits and stock benefits are such an integral part of a successful stock offering or acquisition, we encourage our clients and prospective clients to review these benefit issues well in advance of an actual transaction.

Tax planning and assistance is a critical part of any transaction, including, in particular, corporate reorganizations and mergers and acquisitions. We work closely with our clients in structuring mergers, acquisitions, and corporate reorganizations, in order to achieve the desired tax results.