Track: Pension and Benefits

Change in Control and Executive Benefits: Is Your Corporate Treasury Group Prepared?

Tuesday, October 21, 2008
10:30 a.m. - 12:00 p.m.
Room: 503

Companies that sponsor severance plans, nonqualified plans and employment agreements are often in for a surprise when a Change in Control lands on their door step. This session will discuss many of the unique financing and legal issues that corporate treasurers face, including funding triggers, discretionary trusts, illiquid assets, tax reporting and the new IRS Code 409A.

Speakers:

• Martin D. Eng, CPA
  Chief Financial Officer
  Western Technology Investment

• Peter D. Quinn
  Senior Vice President, Managing Director
  Wachovia Executive Benefits Group

Objectives

• Understand the financial impact of a Change in Control on severance plans, nonqualified plans and employment agreements
• Develop an ability to balance the need for executive benefit security with corporate governance and cash flow needs and become aware of the lack of flexibility to control the rabbi trust assets once a Change in Control is announced
• For companies that have purchased Corporate Owned Life Insurance (COLI) to finance the liabilities, better understand the long-term issues involved with holding vs. surrendering the policies
• Learn about the financing and legal strategies that other companies have used to prepare for a Change in Control

Pre-Requisites

• Understand the basics of severance plans, nonqualified plans and employment agreements
• Familiarity with the concept of a rabbi trust

Take-Aways

• Investments Issues Checklist

CPA Field of Study: FIN