Abstract
Changes in company ownership or control almost always lead to changes in staffing (often including lost jobs), reporting relationships, and pay philosophy. Many U.S. companies address these uncertainties either by establishing ongoing change-in-control arrangements, or by adopting such arrangements when the changes occur or are pending.
This article reviews the compensation policies and regulatory implications of pay actions related to changes in control. It discusses such topics as U.S. trends; ways to avoid inadvertent errors or abuses in agreements; ways to convert outstanding stock options to the new company; and best practices for the future.
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