Pleasanton Executive Compensation Attorneys

California lawyers assist businesses in negotiating pay packages for key employees

Every sizable business needs to recruit executives and managers with the abilities needed to orchestrate policy and to make strategic decisions that further growth and profitability. Developing a generous and competitive executive compensation package is vital not only for recruiting top talent but also for retaining them. Garcia & Gurney, A Law Corporation in Pleasanton is experienced in assisting businesses with creating compensation packages that are suitable to a company’s means and goals and that are compliant with federal and state law.

Key components of an executive compensation package

The executive compensation you offer may include such components as:

  • Base salary
  • Short-term incentives, such as performance-based bonuses that are used to motivate and reward achievement of company goals
  • Fringe benefits, such as health insurance and company cars, which may be negotiated or offered to executives as an add-on to base salary
  • Long-term deferred compensation, such as stock options, restricted stock units (RSUs) and stock appreciation rights (SARs)
  • Retirement plans
  • Severance packages

All of these elements can help align executive performance with company interests.

Legal and regulatory considerations

The executive compensation package of any business must meet requirements and limitations imposed by applicable laws and regulations, such as:

  • The Fair Labor Standards Act (FLSA)—Executives are exempt from most FLSA requirements, including overtime pay, but companies must still satisfy the law’s recordkeeping requirements.
  • Internal Revenue Code Section 409A—This provision imposes a number of restrictions on deferred compensation, including distribution and deferral.
  • State wage payment statutes—California law requires relatively prompt payment of compensation and imposes penalties for delays.
  • SEC regulations—The SEC regulates securities offerings of publicly traded companies and penalizes insider trading and securities fraud.
  • ERISA — Certain retirement plans, such as 401(k)s, must conform to Employee Requirement Income Security Act rules, such as limitations on contributions.

Compensation packages must also comply with anti-discrimination laws. With the help of an experienced corporate lawyer, you can structure your company’s packages in a legally compliant manner calculated to avoid regulatory scrutiny and tax penalties.

Negotiating and structuring executive compensation agreements

An executive compensation package should be attractive and competitive but also affordable and protective of your company’ long-term interests. It may include these components:

  • Performance metrics the candidate must meet to qualify for some types of compensation
  • Claw-back provisions requiring the executive to repay a portion of their incentive compensation if they leave the company prematurely
  • Non-compete and non-disclosure clauses that limit an executive’s ability to harm your company economically during and after their tenure

It is also important that packages be transparent and that they provide an informed basis for shareholder approval.

How Gurney & Garcia can assist with executive compensation

Our firm takes a strategic approach to executive compensation planning. Our employment law attorneys have the legal knowledge to assist you in creating competitive and manageable compensation packages. We help in structuring and negotiating packages and in reviewing them for compliance with legal restrictions. We also provide effective representation in resolving any disputes that may arise. 

Experienced executive compensation attorneys help CA businesses

Garcia & Gurney, A Law Corporation in Pleasanton assists companies with all legal issues involving your business’s executive compensation packages. We serve clients in and around Alameda and Contra Costa counties. Reach out to us by calling 925-468-0400 or contact us online.