Some companies have considered buying back stock from current and former employees when a liquidity event, such as a sale of the company or an IPO, is unlikely to occur. The attached presentation made by Mr. Liazos before the Executive Compensation Subcommittee of the ABA Tax Section addresses the tax issues to consider when structuring stock buyouts that may be considered to involve a service element.
View presentation slides here.
Transactions Update: Purchase Price or Compensation
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