Chapter 11 Treatment of Executive Compensation and Bonuses
Structuring Approvable KEIPs and KERPs, Surviving Objections
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar is about employee incentive plans (KEIPs), employee retention plans (KERPs), and other executive compensation payments before, during, or after Chapter 11 bankruptcies. The panel will discuss the thin line between Bankruptcy Code Sections 503(c)(1) and (c)(3), how to create approvable programs, burdens of proof, and overcoming objections, taking examples from influential courts. The panel will also identify possible securities law issues for publicly traded companies.
Outline
- Options for executive compensation before and after a bankruptcy filing
- The importance of timing
- KEIP vs. KERP
- Requirements for approval
- Common objections
- Evidentiary issues
Benefits
The panel will review these and other pivotal issues:
- How do courts decide whether a KEIP target genuinely incentivizes insiders?
- What does "justified by the facts and circumstances of the case" in 503(c)(3) mean?
- Are bonuses justified when parties have negotiated a pre-filing sale?
- How should debtors document each person's contribution to a reorganization effort?
- How should counsel document the achievement of milestones, if needed?
- What are the methods to determine reasonable compensation amounts?
Faculty
Brian Cumberland
Managing Director
Alvarez & Marsal
Mr. Cumberland leads the firm's Restructuring Compensation practice. With over 30 years of... | Read More
Mr. Cumberland leads the firm's Restructuring Compensation practice. With over 30 years of experience, Mr. Cumberland provides executive compensation advice to clients, development of compensation strategies, design of annual and long-term compensation arrangements, assessments of competitive compensation, and evaluation of tax and accounting ramifications of compensation arrangements. In advising on executive compensation matters, he regularly deals with issues related to stock options, restricted stock, non-qualified retirement plans, deferred compensation, critical employee incentive programs (KEIP) and essential employee retention programs (KERP), global compensation strategies, golden parachute rules, and the one-million deduction limitation.
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Scott D. Price, PC
Partner
Kirkland & Ellis
Mr. Price is a partner in the Firm’s Executive Compensation, Employment and Benefits Group. He has... | Read More
Mr. Price is a partner in the Firm’s Executive Compensation, Employment and Benefits Group. He has extensive experience handling a wide range of executive compensation matters in complex business transactions, including domestic and international mergers, leveraged buyouts, and other acquisitions. In addition, he has represented numerous high-profile executives and management teams in negotiating employment and incentive arrangements. His practice includes structuring and implementing management equity arrangements, deferred compensation, severance, and other executive programs, advising on securities, accounting, and tax law issues regarding executive compensation arrangements.
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Roxanne Tizravesh
Senior Counsel
Akin Gump Strauss Hauer & Feld
Ms. Tizravesh is an experienced business litigator who helps clients solve problems and achieve their goals... | Read More
Ms. Tizravesh is an experienced business litigator who helps clients solve problems and achieve their goals efficiently. Active in both state and federal court, she has advised on director and officer litigation, bankruptcy matters in the energy and other industries, handled internal and government investigations in the U.S. and Europe, and represented investors and financial services firms in a wide array of civil litigation matters.
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