Global Equity Compensation: Equity Compensation Reimbursement Arrangements | Practical Law
A Practice Note addressing equity compensation reimbursement arrangements whereby a US parent corporation that grants equity compensation awards to employees of its non-US subsidiaries around the world charges the costs of these awards to the foreign subsidiaries under an intercompany cost-shifting agreement. The Note addresses the purpose of reimbursement arrangements, the primary requirements of intercompany reimbursement agreements, tax and other legal and regulatory considerations related to these arrangements, and more.