EMPLOYEE BENEFITS BLOG
EMPLOYEE BENEFITS BLOG
Insights on Employee Benefits and Executive Compensation
EMPLOYEE BENEFITS BLOG
Insights on Employee Benefits and Executive Compensation
Executive Compensation
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Governing Health Podcast | 2025 Executive Compensation Committee: Key Priorities and Strategic Insights

by and | Apr 15, 2025 |

This special quarterly series of the Governing Health podcast with SullivanCotter highlights developments in and offers support to the board’s executive compensation committee as it navigates a range of complex operational, technical, and strategic challenges.

In this episode, Michael Peregrine, Tim Cotter, Bruce Greenblatt, Kathy Hastings, and Jeff Holdvogt offer recommendations for the committee to focus on in 2025, including:

  • Establishing appropriate incentive goals in an evolving health system
  • Prioritizing executive succession planning/leadership development
  • Keeping appraised of regulatory and market trends
  • Ensuring flexibility and defensibility in committee approval processes
  • Aligning key governance documents to fulfill committee fiduciary duties
  • Evaluating committee reporting and coordination with other board committees
  • Overseeing executive compensation in for-profit and not-for-profit ventures subsidiaries
  • Considering board compensation trends in not-for-profit health systems
  • Determining the need to evolve committee composition
  • Addressing executive compensation scrutiny

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New Year, New Rules: Global Equity and Employment Law Considerations for Calendar Year 2025

by and | Jan 9, 2025 | , , , ,

Many countries finalized new regulations and released new guidance in 2024 that will impact global equity plans. This client alert highlights key updates from Canada, the European Union, the United Kingdom, Brazil, and other jurisdictions, and recommends steps companies should take to address them.

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Surprise Medical Billing Law ‘Not Working the Way We Want It to Work’

by | May 20, 2024 | ,

A legislative fix to surprise medical billing is not working the way lawmakers imagined it would work. According to this Politico Pro article, private equity groups are disproportionately benefiting from the No Surprises Act, and the law may inadvertently lead to higher health insurance premiums.

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FTC Issues Rule Banning Worker Noncompete Agreements

by , , , , and | Apr 30, 2024 | , , ,

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule, slated for publication in the Federal Register, provides that employers’ use of noncompete agreements amounts to an “unfair method of competition” that runs afoul of Section 5 of the FTC Act.

Read more here.

COMING UP

For a deeper dive, join our multidisciplinary team of employment and antitrust lawyers for a webinar covering what employers need to know about the Final Rule and what to do next.

FTC’s Final Noncompete Rule: What It Means and Next Steps for Employers
Wednesday, May 8, 2024
Webinar | 2:00 – 3:00 pm (EDT)

Register for the webinar here.



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Family Office Tax Webinar Replay: Compensation Strategies

by and | Apr 11, 2024 | , ,

Taxes can have a significant impact on family offices, influencing decisions around structure, investing and overall planning strategies. McDermott’s Family Office Tax webinar series explores the latest trends and guidance on tax planning for family offices and identifies opportunities to optimize tax efficiency.

Our first webinar covered the legal, tax and administrative considerations a family office faces when creating incentive and deferred compensation plans for employees. Discussion topics included:

  • Compensation strategies as tools to use in competing in the “war for talent”
  • Long-term incentive arrangements to reward performance and foster retention
  • Leveraged and non-leveraged co-investment opportunities
  • Benefits of carried interest, phantom equity and profit sharing

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Soaring to New Heights: The IRS’s Crackdown on Aircraft Usage by Corporations and High-Income Earners

by , and | Mar 1, 2024 | ,

The Internal Revenue Service (IRS) has announced plans to initiate dozens of new audits this spring in an attempt to ground high-flying taxpayers and their personal usage of corporate aircrafts. These audits will focus primarily on “highest risk” corporations and large partnerships, IRS Commissioner Danny Werfel stated. Werfel added that audits of high-income earners will likely follow to “ensure that high-income groups are not flying under the radar.”

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Deadlines for the Adoption of Clawback Policies Extended

by , , , , , and | Jun 15, 2023 | ,

The US Securities and Exchange Commission (SEC) recently approved amendments to clawback policy listing standards proposed by the New York Stock Exchange (NYSE) and the Nasdaq Stock Market LLC (Nasdaq) that extend the effective date of the exchanges’ respective listing standards to October 2, 2023. Issuers listed on the NYSE and Nasdaq now have until December 1, 2023 (60 days from the new effective date) to comply with their respective exchange’s listing standards.

Read more here.



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Addressing DOJ’s New Compliance Focus on Executive Compensation

by , , and | May 19, 2023 |

The new compliance focus on executive compensation, as announced by the US Department of Justice (DOJ) on March 3, 2023, has significant implications for how healthcare organizations address both corporate compliance and compensation programs for their executives. It also raises new issues for the board of directors’ oversight of compliance and compensation functions.

In a recent webinar, McDermott’s Ralph E. DeJong, Michael W. Peregrine, Sarah E. Walters and Eugene I. Goldman discussed the new policies, possible responses by management and boards, and potential strategies for responding to the policy goals of the DOJ and the Delaware Chancery Court.

Access the webinar and top takeaways here.



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Prescription Drug Data Reporting: What the “Good Faith Compliance” Extension Really Means for Self-Funded Group Health Plans

by , and | Jan 11, 2023 | , , ,

We recently reported on an FAQ issued December 23, 2022 (FAQ About Affordable Care Act and Consolidated Appropriations Act, 2021 Implementation Part 56) by the US Departments of Labor, Health and Human Services and the Treasury (collectively, the Departments). The FAQ provides limited, albeit welcome, relief by extending the time for reporting information under the prescription drug data collection (RxDC) rules, which were enacted by Section 204 of Title II of Division BB of the Consolidated Appropriations Act, 2021.

Under the statute, the first RxDC reports for the 2020 calendar (or reference) year, were due to be filed by December 27, 2021. However, in response to concerns expressed by stakeholders, enforcement was pushed back a full year to December 27, 2022, at which time the reports for both the 2020 and 2021 reference years were due. The RxDC reporting process required the submission of one or more “plan lists,” a series of eight data files (files D1 through D8) and an accompanying narrative response. (The contents of the plan lists, data files and narrative responses are comprehensively explained here (the Instructions).)

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Why More Companies Are Linking CEO Pay To ESG

by | Dec 27, 2022 |

An important new governance survey suggests an increasing willingness to consider linking a company’s ESG performance measures to executive incentive compensation. Such a practice would demonstrate a significant corporate embrace of social responsibility principles. But implementing such measures may present boards and their compensation committees with practical implementation challenges.

The new survey from The Conference Board, “Linking Executive Compensation to ESG Performance” (the “Survey”), essentially concludes that tying some portion of executive compensation to
ESG principles is becoming a mainstream governance practice. Indeed, Survey data suggests that the percentage of S&P 500 companies that have adopted ESG performance measures is
increasing at a steady pace—from 66 percent in 2020 to 73 percent in 2021.

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