Incentive Plan Decision Making
Incentive Plan Decision Making While Pay versus performance disclosures will headline most executive pay stories,
Take the pain out of major transitions with mergers and acquisitions compensation consulting designed to protect employees and save you money. We have two decades’ experience in M&A solutions that are IRS approved and benefit both employer and employee.
Mergers and Acquisitions (M&A) are a common part of doing business. But they’re also sources of stress for companies and their teams. Whether a merger, acquisition, takeover, joint venture, or IPO, we’ll offer expert advice on executive compensation—and provide the stability to offset a turbulent time.
Our M&A compensation consulting services are geared toward retaining key employees who may be concerned about job duplication or layoffs. We advise on change of control and severance programs that protect the employee and save money for the company. Our expertise in 280g will help you effectively navigate the safe-harbor limit and avoid expensive mistakes.
An M&A can bring together like minds—or it can be a spectacular mismatch. Zayla focuses on business alignment, economic synergy, and diversification. In the case of divestiture, we’re there to help you determine a strategy that protects both your organization and its employees.
Additionally, compensation before, during and after a merger or acquisition can be a complex and challenging topic with wide-ranging impacts to employees. In particular, many employees may become subject to IRC 280g safe harbor limits and potentially lose millions of dollars in additional excise taxes. We have decades of successful experiences advising public and private boards to help mitigate wasted corporate and personal expenses during an M&A.
Zayla’s team is skilled in handling M&A at any point in the process.
AHEAD OF TRANSACTION: we’ll advise on strategies to retain key employees.
DURING THE TRANSITION: we’ll ensure that your organizations are tax efficient and preserve their corporate deduction—and won’t be hit with excise taxes from 280g.
POST-TRANSACTION: we can help you establish a compensation structure for the new organization.
Find out more about what makes Zayla different.
Zayla utilizes IRS-approved strategies out of reasonable compensation provisions defined by IRC 162 to offset large 280g change of control liabilities. We go beyond the traditional methods of consulting agreements or noncompete agreements. As a result, Zayla has saved executives and companies a significant amount of potential wasted assets.
By drawing on our years of practical know-how and detailed analyses of both companies’ compensation structures and the new organization’s goals, we ensure economic synergy and help the new organization reach its “best self” potential.
In their simplest form, mergers and acquisitions (M&A), or change of control, represent the forming of a new organization by consolidating the business assets of two separate companies. An M&A can take the form of one company purchasing or absorbing another company, merging with it to form a new entity, acquiring its major assets or stock, or staging a hostile takeover.
While there are many factors that can cause an M&A to fail, the most common include having many and varied advisors offering recommendations on the deal as a whole, misaligned corporate cultures, or opposing methods for attracting and retaining employees. We have more than two decades’ experience in helping businesses successfully navigate an M&A.
When done well, an M&A can create a new organization focused on economic synergy, that combines the best aspects and policies of its two “parents.”
Accretion, which happens when the assets of an acquired company add value to the existing or newly formed organization, is the most effective measure of M&A success. Generally, this happens when corporate ideals, culture, and compensation programs all work together to create a better version of the organization for the future.
Employee fears of potential job loss rise prior to a merger or acquisition. As a result, employees may often “shop” for a new position if they do not have adequate compensation protection.
It depends upon the level of the employee and the size of the organization, but employees who may be terminated in connection with a change of control often receive enough compensation to cover a period of being out of work and searching for new employment. This may range from 3 months to 3 years of compensation and benefits.
Look for a consultant that has significant experience advising boards and management through the change of control process. Compensation consulting firms that have deep M&A expertise, including IRS regulation 280g, can help you save a significant amount of money. At Zayla, we use advanced, proprietary strategies that smooth the M&A transition, preserve your corporate deduction, and maximize employee assets.
Zayla™ is happy to help your company align your pay and governance structures and processes with your long-term goals.
Call us or fill out the form below to schedule a consultation.