Equity Award Treatment in Corporate Transactions

Summary

This practice note discusses considerations related to the treatment of equity awards held by current and former employees, consultants, or other similar service providers of the target company in a sale transaction. It assumes the target and the acquiror (and their employees) are primarily based in the United States. After discussing certain general considerations that may apply in many transactions, this practice note will discuss more specific considerations related to common equity awards (stock options/stock appreciation rights, restricted stock, and restricted or phantom stock units) in connection with various transactions.