Employment Agreements – Change Of Control Agreements

Authored by Wayne N. Outten, this article originally appeared in Law Journal Newsletters’ Law Firm Partnership & Benefits Report, April 10, 2001. For more information, visit www.ljnonline.com.

In this era of mergers and acquisitions, many companies have implemented so-called change of control arrangements. This article outlines why such arrangements are implemented, how they are structured, and certain tax issues triggered by them.

In short, change of control arrangements provide that designated employees will receive substantial compensation and benefits if they lose their jobs under certain circumstances after control of their employer has changed hands.