Foley Equipped

Working on Borrowed Time? The Risk-Reward Calculus of Recourse Notes for Equity

Introduction One of the more nuanced tools in the executive compensation toolkit is the use of a recourse promissory note issued by an employer to facilitate an employee’s exercise of stock options or purchase of restricted shares. While this arrangement was once a relatively common feature of equity compensation programs — particularly in the pre-Sarbanes-Oxley […]

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