Our executive compensation and employee benefits team brings together a cross-section of specialist lawyers from our Corporate, Employment and Taxation groups. The integrated team advises clients on domestic, international and transnational issues with a particular focus on:
- the diverse methods of remunerating employees and executives, and
- the corporate, tax and employment implications of each method to drive appropriate behaviour and performance.
Complex regulatory environment
In Australia, the legal framework regulating executive compensation and employee benefits is overseen by a host of statutory bodies, including the Australian Tax Office (ATO), the Australian Securities & Investments Commission (ASIC), the Australian Securities Exchange (ASX) and the Australian Prudential & Regulatory Authority (APRA).
Each of these statutory bodies operates under the auspices of very complex legislation and regulations, making executive compensation and employee benefits an intricate area of law and practice.
In addition, the legal treatment that these statutory bodies apply to executive compensation and employee benefits, as well as the policy underpinning this area of law, is presently subject to wholesale legislative change.
We have a strong reputation in advising on:
- employee share options plans and profit-sharing schemes
- incentive plans for corporate executives
- management participation in buy-outs and management buy-ins, and
- employee incentive schemes, including profit-related pay and phantom plans.
This expertise extends to the design and implementation of schemes which domestic and international clients offer in Australia and clients offer globally.
In view of this experience, our executive compensation and employee benefits team has been an integral part of the detailed consultation process undertaken by the government in drafting proposed changes to the legislative regime. We have written various submissions, met with Treasury and other government departments, and remain at the forefront of this changing landscape.
Our team has comprehensive experience with the corporate and tax issues that arise in the context of major corporate transactions such as takeovers, corporate restructures, demergers and securities transactions. We also have extensive experience in advising on disputes arising in connection with these transactions.
We have industry-leading expertise in all design aspects of employee share schemes, including hurdle design, for major publicly listed Australian companies, major publicly listed foreign companies and unlisted companies operating in either Australia or abroad.
Our tax experience extends not only to the Australian income tax treatment of participation in employee benefit arrangements but also the fringe benefits tax treatment and the payroll tax treatment of plans, together with the complex capital gains tax rules which apply to employee benefit arrangements. We have extensive experience in the complex Australian tax rules dealing with the participation of non residents in Australian employee benefit schemes.
The present government agenda to pass sweeping legislative amendments in this area also extends to considerable changes in the ways executives are remunerated, including how their remuneration is set and its tax treatment. We are actively involved in the development of the amendment process.
We have had extensive involvement in consulting with government on the law relating to executive compensation and employee benefits. We maintain a close connection and good working relationship with relevant government offices, whether in the consultation phase of proposed legislative amendments, or in obtaining tax rulings from the ATO and securities laws waivers from ASIC.
Our client base is diverse, ranging from major ASX-listed companies to large unlisted companies. Mallesons’ position in the legal industry and our unique knowledge and commercial insight into laws relevant to employee benefits and executive compensation makes us an attractive adviser to Australian and international clients.