Jon Katz, Michael Arnold, John White, Eric Hilfers and Matthew Bobby Author Article on Executive Incentive Awards Tied to Stock Price for Harvard Law School Forum on Corporate Governance

On June 30, 2022, the Harvard Law School Forum on Corporate Governance published an article written by Cravath partners Jonathan J. Katz, Michael L. Arnold, John W. White, Eric W. Hilfers and Matthew J. Bobby entitled “‘Moonshot’ Incentive Grants in the Market Downturn: Resetting Expectations (and Goals) on Stock Price Mega Grants.” The article examines commercial and legal considerations for public companies when deciding whether to modify executive incentive award goals tied to achievement of stock price goals in light of recent market events. The article provides practical guidance on related topics including shareholder and employee optics and accounting and disclosure implications for directors, management and advisors seeking to review the terms of the awards.

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