Boston MA, January 18, 2016 — In industries like pharmaceuticals and biotechnology, restricted stock awards and restricted stock units are often used as a way to compensate employees and reward them on their loyalty and longevity as a committed worker. RSU stocks are a promising and lucrative form of compensation, allowing an employee to acquire equity in a company and allowing a company an alternative to using cash as an incentive.

Equity for pay preserves cash on the company’s behalf. It can also make money from tax deductions. Equity helps in other ways-it rewards employees for their loyalty, their individual project achievements and the firm's success, and it brings employees an entrepreneurial mindset. It can also backstop or serve as consideration for non-compete and confidentiality agreements that are often signed at the time equity is offered.

Phantom stock agreements are another way to receive equity as an employer. Instead of a bonus plan that grants stock like a RSU stock, phantom stock grants the right to receive a bonus or award based on the value of the company’s stock. Similar to a restricted stock unit, phantom stock provides a bonus based on the value of shares, and the amount of shares agreed upon at the end of the allotted period, or when certain goals are obtained by an employee. In short – phantom stock is much like a promised bonus – possibly much bigger. It will still be taxed upon receiving the cash as well as generating a deduction for the company.

When it comes to receiving compensation on an equity plan, termination can pose and issue and possibly forfeit an employees’ ability to receive their stock or cash bonus. Employment is always necessary to successfully carry out a vesting schedule. Job termination will stop an employee’s vesting schedule, unless other circumstances arise (retirement, death, etc..,). In situations where an employee feels they have been wrongfully terminated: where they have reached the set goal to receive a phantom stock and was then terminated or was terminated right before a vesting schedule was to end, contacting a wrongful termination attorney is crucial. As a promising hire, or a desired recruit – employees are often promised equity in a company to urge them to choose one company over the other. When a company then decides to terminate an individual as they are on the brink of finishing out their vesting period, that employee is deprived of compensation deserved, as well as deprived of the deciding factor that led them to accept the position.

Boston employment attorney, Robert Adelson, frequently represents employees and executives negotiating their employment terms, stock, options, relocation, non-competes, termination and separation agreements. He not only can safeguard an employee from potential termination upon being hired, but can later work with an employee who feels they have been wrongfully terminated and deprived of their stock benefits. With over 30years’ experience negotiating on behalf of executive employees, Robert Adelson will put in the work and the expertise as your wrongful termination lawyer to see that you are not deprived of promised and deserved compensation.

To learn more about restricted stock and restricted stock units, visit www.adelsonemploymentattorney.com

About Robert A. Adelson
With more than 30 years of experience as an executive employment attorney, with clients all across the country, attorney Robert A. Adelson has helped many executives negotiate strong employment contracts that take on essential provisions such as equity, termination and severance. For more information, visit http://www.adelsonemploymentattorney.com/