US companies have been granting various forms of share-based awards to employees around the globe for many years, and companies in other countries are increasingly following suit. Because share-based awards are ubiquitous, and for many companies an important part of the total pay package, we are now also seeing an increasing number of lawsuits and other disputes involving such awards.
When granting share-based awards to employees globally, companies should not underestimate the potential for these awards to play a significant role in disputes with employees and prepare accordingly. While not always successful, companies can and should vigorously defend against such claims on the basis that share-based awards granted by a foreign parent company can be distinguished from locally-paid compensation and may therefore not be subject to the same entitlement and other claims that apply to such compensation.
Read our full blog post here and see the attached chart for a summary of the various claims raised and risk level for each in a select number of countries.
