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Barbara Klementz

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Updated: Mitigation Strategies for Claims Related to Share-Based Awards

By 1 Min Read

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…

China SAFE Requirements for Share-Based Awards

By and 2 Mins Read

Given the ongoing competition for talent in the People’s Republic of China (PRC), the ability to offer share‑based awards has become an important tool for employers seeking to attract and retain employees in the market.For non‑Chinese companies, the primary challenge is compliance with requirements imposed by the State Administration of Foreign Exchange (“SAFE”). While the registration process was historically burdensome and time‑consuming following its introduction in 2007, it has become more efficient over time. Many…

Tax and Legal Considerations for Global Tender Offers

By , , and 1 Min Read

Private company tender offers and similar liquidity programs have become increasingly common in recent years, offering service providers a way to realize value from their equity awards and/or shares—without requiring the company to enter public markets. Our latest article provides a high-level overview to help privately held companies navigate the tax and legal complexities of launching a global tender offer. Structured in a FAQ format, the piece addresses the most frequent questions and challenges we encounter when U.S.…

Singapore: Tax Deduction Available for Awards Settled with Newly Issued Shares

By , , , and 4 Mins Read

The Singapore Budget 2025 is introducing a welcome change to the requirements for obtaining a tax deduction for share-based awards granted to employees in Singapore. With effect from the Year of Assessment (YA) 2026, a tax deduction for such awards will be available also for awards that are settled with newly issued shares, not just treasury shares. Additional clarifications from the Inland Revenue Authority of Singapore (IRAS) on the specific requirements and timing for the…

Argentina: Partial Foreign Exchange Deregulation and Implications for Stock Options / ESPPs

By , and 3 Mins Read

In Brief Argentina has recently relaxed its currency control restrictions for individuals, which should allow optionees to exercise their stock options other than through a cashless exercise method, as it is now possible to remit funds out of Argentina to purchase foreign shares. There has not been a similar relaxation of the exchange control restrictions for local entities. Consequently, it appears that there are still substantial limitations on offering Employee Stock Purchase Plans (ESPP) to…

France: Year-End Tax Reporting Obligations for Employee Share Plans

By , and 4 Mins Read

Employer reporting obligations relating to French-qualified awards For French-qualified1 stock options or BSPCEs2 exercised in 2024 and French-qualified RSU vested in 2024, the French employer must prepare an individual statement with the exercise / vesting data to be provided to the beneficiary no later than March 1, 2025.This individual statement has to be used by the beneficiary to report their taxable income in their French annual income tax return due in May / June 2025…

Trump Administration Impact: Five Areas to Watch

By 2 Mins Read

As Donald Trump prepares to take office as the 47th United States president, we outline the policy positions we expect to see across five key areas that will have significant implications for business. Trump has pledged to lower taxes, cut regulation and impose new tariffs on imported goods. The ability of the new President to implement his plans will be heavily impacted by the makeup of Congress. With President-elect Trump’s party controlling the Senate, and…

Mitigation Strategies for Claims Related to Share-Based Awards

By 8 Mins Read

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. The Claims Broadly, these disputes can be categorized as follows: Entitlement Claims These can arise…

Global Share Plan Update (September 2024)

By and 1 Min Read

We have released the September 2024 edition of our “Clients & Friends Newsletter,” which reviews the latest developments impacting share plans globally. Explore the newsletter, and/or register for our upcoming October 8th webinar, to learn more about the impact of the following tax, legal and regulatory changes on your share plans:

A Cautionary Tale: US Estate Tax May be Due on Equity Awards/Shares Held by Non-US Residents

By 6 Mins Read

One of the biggest sleeper issues (in my opinion) for US companies when granting equity awards to non-US employees or other service providers is the fact that their heirs may be assessed with US estate tax and be required to file an estate tax return in the US if the individual dies while holding equity awards or shares. US Estate Tax Exemptions Individual US taxpayers (i.e., US citizens and non-US citizens who are domiciled in…

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