Barbara Klementz

Given the ongoing competition for talent in the People’s Republic of China (PRC), the ability to offer share‑based awards has become an important tool for employers seeking to attract and retain employees in the market. For non‑Chinese companies, the primary challenge is compliance with requirements imposed by the State Administration of Foreign Exchange (“SAFE”).

Private company tender offers and similar liquidity programs have become increasingly common in recent years, offering service providers a way to realize value from their equity awards and/or shares—without requiring the company to enter public markets. Our latest article provides a high-level overview to help privately held companies navigate the tax and legal complexities of launching a global tender offer.

US companies have been granting various forms of share-based awards to employees around the globe for many years, and companies in other countries are increasingly following suit. Because share-based awards are ubiquitous, and for many companies an important part of the total pay package, we are now also seeing an increasing number of lawsuits and other disputes involving such awards.