- The DOL has proposed regulations intended to clarify and expand prior regulations addressing ERISA’s fiduciary duty of prudence for the selection of directed investment alternatives (DIAs) in participant-directed defined contribution plans (such as 401(k) plans).
- The proposed regulations include an optional safe harbor intended to create a presumption
Executive Compensation
Supreme Court Expands Flexibility for Multiemployer Plans in Setting Withdrawal Liability Assumptions
By Paul Porretta, Allen Woolley & Josh Trawick on
Posted in Executive Compensation
Key Points
- The Supreme Court held in M & K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund that MEPPs may adopt actuarial assumptions after the measurement date when calculating withdrawal liability.
- The decision allows MEPP actuaries to set or revise discount rates after the measurement date and apply them retroactively, so long as they are supported by data and actuarial standards.
New California Requirements for Signing Bonuses Subject to Repayment Upon Early Termination
By David Kaplan on
Posted in Executive Compensation
California recently enacted Section 16608 of the California Business and Professions Code, which bans agreements that require employees to pay a “penalty, fee or cost” upon termination, effective January 1, 2026.
Bonuses that are subject to repayment will be prohibited by this new law, unless they satisfy the following requirements:
SEC Conducts Roundtable on Executive Compensation Disclosure Practices
By Sheri Adler & Jina Davidovich on
Posted in Executive Compensation, SEC
As previewed in our previous blog post, the Securities and Exchange Commission (SEC) hosted a roundtable on executive compensation disclosure on June 26, with panelists considering whether and to what extent the current executive compensation disclosure requirements for public companies should be reformed.
Executive Compensation Disclosures Are Back on the (Round)table at the SEC
By Jina Davidovich, Emily Davidson & Sheri Adler on
Posted in Executive Compensation, SEC
The SEC announced on May 16 that it will host a roundtable discussion with representatives from public companies, compensation consultants, lawyers, investors, and other stakeholders on the topic of executive compensation programs and the related disclosures required in public company proxy statements. The roundtable will take place on June 26 at the SEC’s headquarters. If you are interested, you can register in advance to attend in-person, or you can watch the roundtable virtually. The virtual link will be available on June 26 at www.sec.gov, and the SEC intends to make a recording available at a later date. The agenda and panelists for the roundtable were announced on June 11 and are described in more detail here.
Feeling Competitive: The Reasonableness of Forfeiture-for-Competition Provisions
By Jina Davidovich on
Posted in Executive Compensation
Though the FTC’s noncompete ban has since fizzled out, the commotion around noncompetes also led to conversations about “forfeiture-for-competition” clauses — a similar, but distinct type of agreement.…
SEC Adopts Final Clawback Rules
By Laura Ferguson on
Posted in Executive Compensation, SEC
The SEC adopted long-awaited final rules that require the recovery of erroneously awarded incentive-based compensation of executive officers, as required by the Dodd-Frank Act. Under Rule 10D-1, each exchange must adopt listing standards that will apply to all listed issuers, with limited exceptions. Each issuer must adopt a clawback policy…