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Management Packages
Whether negotiated in connection with a change of control or in the case of large companies, in connection with implementing incentive plans, structuring how corporate executives and managers access share capital, i.e. management packages, need to comply with a number of legal and tax requirements, while allowing to maintain the fragile financial equilibrium between the risks borne by the head of the company and their managers as investors, as well as their earnings prospects.
The technicity of such mechanisms should not curtail the primary objective of creating a long-term alignment of interests between majority shareholders, corporate executives and their key managers, which is conducive to retaining talent and collective value creation.
Whether or not instituted in connection with a transaction, each management package represents an opportunity to create value provided that related requirements, particularly in relation to liquidity, respond to the company’s needs and managerial requisites of its directors.
With 20 years of experience and all the advantages of an independent law firm, OPLEO Avocats is recognized as a leader in this field, advising corporate executives and their key managers throughout their negotiations with majority shareholders, and in the execution and ongoing considerations of management package arrangements, particularly in the context of LBOs.
OPLEO Avocats also provides expertise to corporate executives and their human resources teams in connection with setting up share ownership incentive plans in all types of public and non-public companies.
A core activity of the Firm along with our hallmark wealth management practice, our management package activity mobilizes all of our cross-disciplinary skills in legal, tax, employment law matters, as well as wealth management. We liaise with our clients’ financial advisors to structure personalized and interactive decision-making tools, including value allocation models for different financial instruments and modeling for profit-sharing plans, as well as analysis of the individual or collective tax situations.
We also audit existing management packages and assist our clients in their dealings with the tax authorities in cases when the nature of capital gain is questioned, for instance, when their management package is unwound.