by Mike Baker | Jul 1, 2021
Section 409A is a highly technical section of the tax code that slaps a 20% tax penalty onto improperly structured deferred compensation. But there is a hack. You can avoid the penalty by adding these 10 magic words to the contract… “, subject to [his/her] continuous...
by Mike Baker | Mar 27, 2020
On March 27, 2020, President Trump signed the third – and most comprehensive – coronavirus relief package into law. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was passed by both the House of Representatives and the Senate with broad...
by Mike Baker | Feb 19, 2020
You have an employee who is leaving. She tells you she doesn’t have the cash to exercise her Company stock option in the first three months post-termination and she realizes if she doesn’t the option will expire. She pleads with you to do something and you are willing...
by Mike Baker | Jan 4, 2020
You can tell the difference between equity and non-equity partners at Kirkland & Ellis by looking to see if they have “P.C.” after their name. It’s true. See here for an example of an equity partner and here for an example of a non-equity partner. Still skeptical?...
by Mike Baker | Nov 23, 2019
Let me explain why buying stock with a note can be so amazing. Imagine your employer offers you two alternatives: one million dollars worth of stock, or a stock option giving you the right to buy stock currently worth one million dollars. The stock option right lasts...
