Companies Should Consider Modifying "Change In Control" Definitions In Executive Compensation Arrangements To Avoid Unintended Payment Trigger

Last year, a federal court considered whether a "change in control" had occurred under the terms of a company's Executive Severance Agreement (the "ESA"). The court's decision provides guidance on how a court might interpret a change in control definition under executive compensation arrangements and highlights the need for some companies to consider modifying their definitions for clarity. READ MORE