Introduction: Why
the Chief Executive Legal Guide and Why Now....................... xv
1. WHITE COLLAR CRIMINAL LAW................................................................................... 1-1
Introduction............................................................................................................. 1-3
PART I. CRIMINAL INVESTIGATION & PROSECUTION...................................................... 1-5
A. WHAT IS AT STAKE............................................................................................................................................. 1-5
B. ANATOMY OF A WHITE COLLAR CRIMINAL PROSECUTION.............................................................. 1-5
C. CEO ACTION PLAN............................................................................................................................................ 1-8
PART II. PERSONAL CRIMINAL LIABILITY OF CEOS........................................................ 1-10
A. WHAT IS AT STAKE........................................................................................................................................... 1-10
B. THE VARIOUS MEANS THROUGH WHICH A CEO CAN BE
PERSONALLY LIABLE
FOR CRIMINAL VIOLATIONS.................................................................................................................... 1-10
The Corporate Veil May Not Protect You ......................................................................................... 1-11
Accomplice Liability And Willful Blindness .................................................................................... 1-11
Execution of Certifications ..................................................................................................................... 1-12
Responsible Corporate Officer .............................................................................................................. 1-12
C. CEO ACTION PLAN.......................................................................................................................................... 1-13
PART III. SECURITIES FRAUD........................................................................................ 1-14
A. WHAT IS AT STAKE........................................................................................................................................... 1-14
B. LEGAL BRIEFING................................................................................................................................................ 1-14
Securities Fraud Based on False or Misleading Statements ..................................................... 1-15
Civil and Criminal Remedies for Securities Fraud ....................................................................... 1-17
Securities Fraud Based on Insider Trading Allegations ............................................................. 1-17
C. CEO ACTION PLAN.......................................................................................................................................... 1-18
PART IV. FOREIGN CORRUPT PRACTICES ACT............................................................... 1-20
A. WHAT IS AT STAKE........................................................................................................................................... 1-20
B. LEGAL BRIEFING................................................................................................................................................ 1-20
Select Defenses to FCPA Liability......................................................................................................... 1-22
C. FCPA RISK ASSESSMENT............................................................................................................................... 1-22
Risk #1: Willful Blindness....................................................................................................................... 1-22
Risk #2: Third-Party Agents................................................................................................................... 1-23
Risk #3: Government-Owned Businesses......................................................................................... 1-23
Risk #4: Foreign Subsidiaries............................................................................................................... 1-23
Risk #5: Successor Liability .................................................................................................................. 1-24
Risk #6: Joint Ventures............................................................................................................................ 1-24
Risk #7: Global Anti-Corruption Enforcement............................................................................... 1-24
D. CEO ACTION PLAN......................................................................................................................................... 1-24
Compliance Programs............................................................................................................................... 1-25
Monitoring..................................................................................................................................................... 1-25
Consider Voluntary Self-Disclosure..................................................................................................... 1-25
PART V. DATA PRIVACY............................................................................................... 1-26
A. WHAT IS AT STAKE........................................................................................................................................... 1-26
B. LEGAL BRIEFING................................................................................................................................................ 1-27
Data Transfer Regulations...................................................................................................................... 1-28
Blocking Statutes......................................................................................................................................... 1-29
Data Protection Laws................................................................................................................................. 1-29
Monitoring Laws.......................................................................................................................................... 1-32
Data Mining Laws........................................................................................................................................ 1-32
Data Breach Laws........................................................................................................................................ 1-33
C. CEO ACTION PLAN.......................................................................................................................................... 1-34
Immediate Action Plan............................................................................................................................. 1-34
Ongoing and Unscheduled Action Plan............................................................................................... 1-34
Annual Action Plan..................................................................................................................................... 1-35
D. BOTTOM LINE................................................................................................................................................... 1-35
PART VI. ADDITIONAL RESOURCES.............................................................................. 1-36
A. General White Collar Criminal Defense Resources......................................................... 1-36
B. Securities Fraud Resources................................................................................................................. 1-36
C. Foreign Corrupt Practices Act Resources............................................................................... 1-37
D. Data Privacy Resources........................................................................................................................ 1-37
2. EMPLOYMENT & LABOR ............................................................................................... 2-1
Part I. Employment Discrimination........................................................................ 2-3
A. What Is at Stake............................................................................................................................................. 2-3
B. Overview of Key Legal Issues................................................................................................................. 2-3
C. CEO Hot Topics................................................................................................................................................ 2-4
D. CEO Action Plan............................................................................................................................................ 2-5
Part II. HARASSMENT IN THE WORKPLACE................................................................... 2-7
A. What Is at Stake............................................................................................................................................. 2-7
B. Overview of Key Legal Issues................................................................................................................. 2-7
What Is Harassment?................................................................................................................................... 2-7
Employer Liability for Unlawful Harassment................................................................................... 2-8
Types of Conduct that May be Found to be Harassment................................................................. 2-9
C. CEO Hot Topics................................................................................................................................................ 2-9
D. CEO Action Plan......................................................................................................................................... 2-10
Part III. Whistleblowing and retaliation........................................................... 2-12
A. What Is at Stake........................................................................................................................................... 2-12
B. Overview of Key Legal Issues.............................................................................................................. 2-12
C. CEO Hot Topics............................................................................................................................................. 2-13
D. CEO Action Plan......................................................................................................................................... 2-14
Part IV. Employee privacy...................................................................................... 2-15
A. What Is at Stake........................................................................................................................................... 2-15
B. Overview of Key Legal Issues.............................................................................................................. 2-15
C. CEO Hot Topics............................................................................................................................................. 2-16
D. CEO Action Plan......................................................................................................................................... 2-17
Part V. wage and hour........................................................................................... 2-18
A. What Is at Stake........................................................................................................................................... 2-18
B. Overview of Key Legal Issues.............................................................................................................. 2-18
Which Law Applies?................................................................................................................................... 2-18
Independent Contractor or Employee?............................................................................................... 2-18
How Broad Is the Definition of an Employer?................................................................................. 2-19
Is the Employment Relationship at Issue Exempt?....................................................................... 2-19
C. CEO Hot Topics............................................................................................................................................. 2-22
D. CEO Action Plan......................................................................................................................................... 2-22
Conduct a Wage & Hour Audit................................................................................................................ 2-22
Part VI. collective bargaining and unions......................................................... 2-23
A. What Is at Stake........................................................................................................................................... 2-23
B. Overview of Key Legal Issues.............................................................................................................. 2-23
Who Is Covered?.......................................................................................................................................... 2-23
What are the Employee’s Rights?......................................................................................................... 2-23
What Are the Employer’s and the Union’s Rights and Obligations?........................................ 2-24
Union Organizing, Petitioning, and Elections.................................................................................. 2-25
The Bargaining Process........................................................................................................................... 2-27
Good Faith ..................................................................................................................................................... 2-27
C. CEO Hot Topics............................................................................................................................................. 2-28
D. CEO Action Plan......................................................................................................................................... 2-28
Part VII. RETURN TO WORK........................................................................................ 2-29
A. What Is at Stake........................................................................................................................................... 2-29
B. Overview of Key Legal Issues.............................................................................................................. 2-29
C. CEO Hot Topics............................................................................................................................................. 2-30
D. CEO Action Plan......................................................................................................................................... 2-31
3. WORKPLACE HEALTH AND SAFETY............................................................................. 3-1
WORKPLACE health AND SAFETY................................................................................................................ 3-3
I. What Is at Stake............................................................................................................................................... 3-3
II. Overview of Key Legal Issues................................................................................................................. 3-3
A. Introduction................................................................................................................................................. 3-3
B. OSHA Standards........................................................................................................................................ 3-4
C. OSHA and Employer Inspections........................................................................................................ 3-5
D. The Types of OSHA Violations............................................................................................................ 3-7
E. The Contest Process, Hearing and Appeal...................................................................................... 3-8
F. Personal Liability for OSHA Violations........................................................................................... 3-8
G. Criminal Liability..................................................................................................................................... 3-8
H. Record-Keeping Requirements.......................................................................................................... 3-9
I. Occupational Safety & Health Training Requirements............................................................ 3-12
III. CEO Hot Topics............................................................................................................................................. 3-15
IV. CEO Action Plan......................................................................................................................................... 3-16
HEALTH CARE BENEFITS Introduction........................................................................ 4-i
How This Chapter Helps CEOs Deal with Health care Law and
Benefits.................... 4-i
Special Supplement: Health Care Reform Implementation
& Planning...................... 4-ii
How to Get the Most Value Out of the Health Care Coverage....................................... 4-ii
4. HEALTH CARE BENEFITS.............................................................................................. 4-1
INTRODUCTION............................................................................................................. 4-3
A. What This Chapter Does and Does Not Concern................................................................. 4-3
B. “Employer” and “Employee”................................................................................................................... 4-4
1. Who is the employer? ............................................................................................................................ 4-4
2. Who is an employee?............................................................................................................................... 4-5
C. The Financial Side of Health Insurance..................................................................................... 4-5
1. “Fully-Insured” and “Self-Funded”..................................................................................................... 4-5
2. Taxes.............................................................................................................................................................. 4-6
Part I. HEALTH CARE REFORM—THE EMPLOYER MANDATE......................................... 4-7
A. What Is at Stake............................................................................................................................................. 4-7
B. Legal Briefing................................................................................................................................................... 4-7
1. The Big Picture.......................................................................................................................................... 4-7
2. Affected Employers.................................................................................................................................. 4-8
3. The Maximum Penalty ......................................................................................................................... 4-8
4. The Alternate Penalty............................................................................................................................. 4-9
C. CEO Action Plan............................................................................................................................................ 4-9
Part II. HEALTH CARE REFORM—THE REST OF THE STORY......................................... 4-11
A. What Is At Stake........................................................................................................................................... 4-11
B. Legal Briefing................................................................................................................................................ 4-11
C. CEO Action Plan.......................................................................................................................................... 4-12
Part III. health savings accounts AND HIGH‑DEDUCTIBLE HEALTH PLANS......... 4-13
A. What Is at Stake........................................................................................................................................... 4-13
B. Legal Briefing................................................................................................................................................ 4-13
1. HSAs ............................................................................................................................................................ 4-13
2. HDHPs......................................................................................................................................................... 4-15
C. CEO Action Plan.......................................................................................................................................... 4-15
Part IV. COBRA........................................................................................................... 4-17
A. What Is at Stake........................................................................................................................................... 4-17
B. Legal Briefing................................................................................................................................................ 4-17
C. CEO Action Plan.......................................................................................................................................... 4-18
Part V. nondiscrimination.................................................................................... 4-19
A. What Is at Stake........................................................................................................................................... 4-19
B. Legal Briefing................................................................................................................................................ 4-19
C. CEO Action Plan.......................................................................................................................................... 4-20
Part VI. hipaa privacy and security...................................................................... 4-22
A. What Is at Stake........................................................................................................................................... 4-22
1. Audits and Complaints.......................................................................................................................... 4-22
2. Civil Money Penalties........................................................................................................................... 4-22
3. Criminal Penalties................................................................................................................................. 4-23
4. Civil Suits by Individuals..................................................................................................................... 4-23
B. Legal Briefing................................................................................................................................................ 4-23
1. The Big Picture........................................................................................................................................ 4-23
2. Key Concepts............................................................................................................................................. 4-23
3. Compliance Highlights......................................................................................................................... 4-24
C. CEO Action Plan.......................................................................................................................................... 4-25
Part VII. RETIREE HEALTH Plans................................................................................ 4-26
A. What Is At Stake........................................................................................................................................... 4-26
B. Legal Briefing................................................................................................................................................ 4-26
C. CEO Action Plan.......................................................................................................................................... 4-26
Part VIII. REPORTING AND DISCLOSURE..................................................................... 4-28
A. What Is at Stake........................................................................................................................................... 4-28
B. Legal Briefing................................................................................................................................................ 4-28
C. CEO Action Plan.......................................................................................................................................... 4-30
Special Supplement HEALTH CARE REFORM
IMPLEMENTATION AND PLANNING.................................................................. SUPP-1
Introduction and Background....................................................................... SUPP-3
Part I. Key aca rules ........................................................................................... SUPP-5
A. Extension of Dependent Child Coverage up to Age 26 ............................................ SUPP-5
B. No Rescission of Coverage ........................................................................................................... SUPP-6
C. Elimination of Lifetime Dollar Limits on Essential Benefits ............................... SUPP-7
D. Elimination of Annual Limits on Essential Health Benefits .............................. SUPP-8
E. Pre-existing Condition Exclusion ........................................................................................... SUPP-9
F. Nondiscrimination Under Section 105(h) ........................................................................ SUPP-10
G. Revised Internal and External Appeals Process ....................................................... SUPP-11
H. Automatic Enrollment ............................................................................................................... SUPP-14
I. HSA/Archer MSA Penalty Tax Increase ................................................................................ SUPP-14
J. OTC Drug Limits and Changes to the Medical Expense Deduction................ SUPP-15
K. FSA Cap ....................................................................................................................................................... SUPP-15
L. W-2 and Other Reporting ............................................................................................................. SUPP-15
M. High Income Earner Taxes.......................................................................................................... SUPP-19
N. Exchange Notification................................................................................................................. SUPP-20
O. New Summary of Benefits Notice........................................................................................... SUPP-20
P. Employer-Provided Coverage Mandate (Play-or-Pay)............................................. SUPP-21
Q. Miscellaneous Provisions, Including Those Effective in 2013/2014............. SUPP-24
R. Tax on High-Cost Employer-Sponsored Coverage (Cadillac Tax)................. SUPP-26
Part II. Big Picture strategies and the potential downside.................... SUPP-29
A. Active Employees—Deciding Whether to Play or Pay ............................................ SUPP-29
B. Active Employees—Avoiding the Penalty—Workforce Realignment......... SUPP-30
C. Avoiding ACA: Retiree Only Plans........................................................................................... SUPP-31
D. Taking Advantage of the Exchanges: Retiree Medical Exit Strategy.......... SUPP-32
Part III. new remedies beyond the benefit promised:
ACA Whistleblower Protections............................................................. SUPP-34
Part IV. Conclusion........................................................................................... SUPP-36
5. INTELLECTUAL PROPERTY LAW................................................................................... 5-1
WHAT Is AT STAKE........................................................................................................ 5-3
PART I. ACTION PLAN FOR CEOs.................................................................................... 5-5
HOW TO USE THIS ACTION PLAN..................................................................................................................... 5-5
PHASE 1: BASELINE ASSESSMENT.................................................................................................................... 5-6
Is Your Company’s IP Strategy Properly Aligned With Its
Business Strategy for Creating
IP Assets of Value and Managing IP Risk? ................................................................................. 5-6
PHASE 2: PROGRAM REVIEW IN RESPONSE TO UNSCHEDULED TRIGGERS..................................... 5-7
Does Your Company’s IP Program Require Adjustment? ............................................................. 5-7
PHASE 3: ANNUAL PROGRAM REVIEW............................................................................................................ 5-8
Is Your Company’s IP Program Effective? .......................................................................................... 5-8
PART II. LEGAL BRIEFING................................................................................................ 5-9
Patents .................................................................................................................................................................... 5-9
Trade Secrets....................................................................................................................................................... 5-9
Copyrights........................................................................................................................................................... 5-10
Trademarks ........................................................................................................................................................ 5-10
IP-Related Agreements................................................................................................................................ 5-11
IP Strategy Must Match the Company’s Business Strategy
(and protect the products stemming from that strategy).................................. 5-12
Most Common IP Issues that Can Harm an IP Strategy........................................................ 5-15
Common Patent Asset Issues.................................................................................................................. 5-15
Common Trade Secret Issues ................................................................................................................ 5-16
Common Copyright Issues........................................................................................................................ 5-18
Common Trademark Issues.................................................................................................................... 5-18
Common IP Licensing Issues................................................................................................................... 5-19
General IP Issues......................................................................................................................................... 5-21
PART III. WHAT TO DO................................................................................................. 5-22
1. IP Program Implementation: Generate or Revise
Procedures
to Implement IP Strategy.................................................................................................................. 5-22
2. OVERSEEING THE IP PROGRAM................................................................................................................... 5-23
Annual Program Review.......................................................................................................................... 5-24
THE BOTTOM LINE............................................................................................................................................... 5-25
PART IV. CASE STUDIES............................................................................................... 5-26
PART V. TOOLS & RESOURCES..................................................................................... 5-27
A. MATERIALS FOR YOUR HEAD OF IP.......................................................................................................... 5-27
Invention Disclosure Form...................................................................................................................... 5-27
B: Resource at the U.S. Patent and Trademark Office’s
website
for conducting patent searches: ........................................................................................... 5-33
C: Resource at the U.S. Patent and Trademark Office’s
website
for conducting trademark searches: .................................................................................. 5-33
D: Resource at the U.S. Copyright Office’s website
for researching copyright questions, such as what qualifies
as a proper copyright notice: ...................................................................................................... 5-33
E: Discussion of what is a patent troll at the Patently-O blog.................................. 5-33
F: Illustration of how an IP leakage situation could arise. ......................................... 5-33
G. LAWS & PRIMARY SOURCE MATERIALS................................................................................................... 5-35
6. CORPORATE LAW......................................................................................................... 6-1
Part I. Personal Liability of Officers and Directors......................................... 6-3
WHAT IS AT STAKE.................................................................................................................................................. 6-3
Directors’ Fiduciary Duties........................................................................................................................ 6-3
Officers’ Fiduciary Duties........................................................................................................................... 6-5
Liability for Unlawful Distributions....................................................................................................... 6-7
Transactions in Public Company Stock and Section 16 of the
Securities
Exchange Act of 1934.......................................................................................................................... 6-7
ADDITIONAL RESOURCES.................................................................................................................................... 6-9
Part II. Securities Laws Basics for Public and Private Companies.................. 6-11
What Is at Stake................................................................................................................................................ 6-11
Private Placements.................................................................................................................................... 6-11
Public Company Reporting and Certifications................................................................................. 6-14
Sales of Public Shares by Directors and Officers............................................................................ 6-17
Insider Trading............................................................................................................................................ 6-19
Part III. Corporate Governance............................................................................ 6-22
What Is at Stake................................................................................................................................................ 6-22
Financial Reporting Oversight............................................................................................................... 6-22
Shareholder Influence and Engagement........................................................................................... 6-23
Succession Planning................................................................................................................................... 6-25
ADDITIONAL RESOURCES................................................................................................................................. 6-28
Part IV. Mergers and Acquisitions....................................................................... 6-29
What Is at Stake................................................................................................................................................ 6-29
Marketing and Preliminary Negotiation.......................................................................................... 6-29
Letter of Intent.............................................................................................................................................. 6-30
Diligence......................................................................................................................................................... 6-31
Acquisition Agreement............................................................................................................................. 6-31
Post-Signing Period Through Closing................................................................................................. 6-35
Attorney-Client Privilege in Transaction Context......................................................................... 6-35
7. ENVIRONMENTAL LAW................................................................................................ 7-1
Introduction............................................................................................................. 7-3
Part I. Environmental Due Diligence..................................................................... 7-5
A. What is at Stake............................................................................................................................................. 7-5
B. Evaluation of Potential Site Contamination......................................................................... 7-5
C. Evaluation of Off-Site Liability.......................................................................................................... 7-6
D. Issues Associated with Operating Companies......................................................................... 7-6
E. CEO Action Plan............................................................................................................................................. 7-7
Part II. The Comprehensive Environmental Response,
Compensation
and Liability Act.................................................................................................. 7-8
A. What is at Stake............................................................................................................................................. 7-8
B. legal briefing................................................................................................................................................... 7-8
C. CEO Action PLan............................................................................................................................................ 7-9
Part III. Resource Conservation and Recovery Act.......................................... 7-10
A. What is at Stake........................................................................................................................................... 7-10
B. Legal Briefing................................................................................................................................................ 7-10
C. CEO Action Plan.......................................................................................................................................... 7-11
Part IV. Clean Air Act............................................................................................... 7-12
A. What is at Stake........................................................................................................................................... 7-12
B. Legal Briefing................................................................................................................................................ 7-12
National Ambient Air Quality Standards and State Implementation Plans........................ 7-12
Prevention of Significant Deterioration and New Source Review.......................................... 7-13
New Source Performance Standards.................................................................................................. 7-14
Title V Operating Permits....................................................................................................................... 7-14
The Acid Rain Program............................................................................................................................ 7-14
The Cross-State Air Pollution Rule...................................................................................................... 7-14
Hazardous Air Pollutants........................................................................................................................ 7-15
Greenhouse Gas Reporting...................................................................................................................... 7-15
C. CEO Action Plan.......................................................................................................................................... 7-15
Part V. Clean Water Act......................................................................................... 7-16
A. What is at Stake........................................................................................................................................... 7-16
B. legal briefing................................................................................................................................................ 7-16
C. CEO Action Plan.......................................................................................................................................... 7-17
Part VI. SEC Disclosure Obligations.................................................................... 7-18
Environmental CEO Action Plan Overview........................................................ 7-19
Additional Resources:................................................................................................................................ 7-19
8. COMMERCIAL AND TRANSACTIONAL LAW................................................................. 8-1
WHAT Is at Stake........................................................................................................ 8-3
PART I. LEGAL BRIEFING................................................................................................. 8-6
A. Contract Law................................................................................................................................................. 8-6
Contracts for Services.................................................................................................................................. 8-7
Writings.......................................................................................................................................................... 8-11
Contracts v. Negotiations......................................................................................................................... 8-15
Waiver and Modification......................................................................................................................... 8-16
Verbal Modifications................................................................................................................................. 8-18
Trade Usage.................................................................................................................................................. 8-18
Arbitration Clauses..................................................................................................................................... 8-19
Choice of Law................................................................................................................................................ 8-21
Domestic Sales of Goods........................................................................................................................... 8-21
International Sales of Goods................................................................................................................... 8-23
Leases of Goods............................................................................................................................................ 8-24
B. LAW OF PAYMENTS......................................................................................................................................... 8-24
Uniform Commercial Code...................................................................................................................... 8-25
Other Laws..................................................................................................................................................... 8-26
C. REAL ESTATE...................................................................................................................................................... 8-28
Property Rights............................................................................................................................................ 8-29
Zoning Codes................................................................................................................................................. 8-29
Building Codes.............................................................................................................................................. 8-30
Recording Requirements......................................................................................................................... 8-30
Mortgages and Foreclosures.................................................................................................................. 8-31
Mortgage Backed Securities................................................................................................................... 8-31
D. STRUCTURED FINANCE................................................................................................................................. 8-32
Types of Structured Finance Transactions........................................................................................ 8-33
Regulation...................................................................................................................................................... 8-34
E. CONSUMER PROTECTION AND UNFAIR TRADE PRACTICES........................................................... 8-37
Federal Laws................................................................................................................................................. 8-38
Consumer Lending, Credit, and Financial Transaction Protection Laws............................... 8-39
Non-Financial Consumer Protection Laws........................................................................................ 8-43
State Laws...................................................................................................................................................... 8-46
PART II. CEO ACTION PLAN........................................................................................... 8-50
Manage................................................................................................................................................................... 8-52
Invest....................................................................................................................................................................... 8-52
Target...................................................................................................................................................................... 8-52
Include................................................................................................................................................................... 8-53
Grant....................................................................................................................................................................... 8-53
Analyze.................................................................................................................................................................. 8-53
Train......................................................................................................................................................................... 8-54
Evaluate................................................................................................................................................................ 8-54
9. ANTITRUST/CARTEL REGULATION.............................................................................. 9-1
PART I. ANTITRUST/CARTEL REGULATION...................................................................... 9-3
A. WHAT IS AT STAKE............................................................................................................................................. 9-3
What Is at Stake for Individual Executives?....................................................................................... 9-5
B. LEGAL BRIEFING................................................................................................................................................... 9-5
US Cartel Law and Enforcement.............................................................................................................. 9-6
EU Competition Law and Enforcement................................................................................................. 9-6
Determining Whether an Antitrust Violation Has Occurred........................................................ 9-7
Extraterritorial Enforcement of Antitrust Laws............................................................................... 9-7
Leniency Policies........................................................................................................................................... 9-7
Timing Is Critical When Making a Leniency Application............................................................ 9-10
C. CEO ACTION PLAN.......................................................................................................................................... 9-10
PART II. ADDITIONAL RESOURCES............................................................................... 9-13
Antitrust Resources..................................................................................................................................... 9-13
10. CORPORATE TAX IMPLICATIONS OF MERGERS & ACQUISITIONS........................... 10-1
I. WHAT IS AT STAKE............................................................................................................................................. 10-3
II. Acquisitions.................................................................................................................................................... 10-3
A. Public Versus Privately Held Target Corporation .................................................................. 10-3
B. Taxable Acquisitions ........................................................................................................................... 10-4
C. Tax-Free Acquisitive Reorganizations.......................................................................................... 10-8
III. Dispositions and separations........................................................................................................ 10-18
A. Taxable Separations.......................................................................................................................... 10-19
B. Tax-Free Separations........................................................................................................................ 10-19
C. Other Disposition Structures............................................................................................................ 10-26
IV. SPECIAL CONSIDERATIONS..................................................................................................................... 10-27
A. Cross-Border Transactions.............................................................................................................. 10-27
B. Contingent Consideration................................................................................................................. 10-27
C. State and Local Tax Considerations ............................................................................................. 10-27
D. Employee Matters–Golden Parachutes...................................................................................... 10-28
E. Tax Attributes ...................................................................................................................................... 10-28
V. CEO Action Plan....................................................................................................................................... 10-30
VI. Bottom Line................................................................................................................................................ 10-32
11. ESTATE PLANNING FUNDAMENTALS FOR CEOS..................................................... 11-1
PART I. ESTATE PLANNING FUNDAMENTALS............................................................... 11-3
a. WHAT IS AT STAKE........................................................................................................................................... 11-3
B. TAX AND NON-TAX OBJECTIVES.............................................................................................................. 11-3
C. OVERLAP WITH OTHER AREAS................................................................................................................... 11-4
D. THE ESTATE PLANNING PROCESS............................................................................................................ 11-4
PART II. PLANNING FOR DISPOSITION
OF PROPERTY AT DEATH....................................................................................... 11-6
A. WILL VS. REVOCABLE TRUST....................................................................................................................... 11-6
B. NONPROBATE ASSETS................................................................................................................................... 11-7
C. BASIC PROVISIONS OF A WILL OR REVOCABLE TRUST..................................................................... 11-7
PART III. TAX-ORIENTED ESTATE PLANNING................................................................ 11-9
A. OVERVIEW OF FEDERAL ESTATE AND GIFT TAX................................................................................. 11-9
B. STATE DEATH TAXES................................................................................................................................... 11-12
C. TESTAMENTARY PLANNING FOR MARRIED COUPLES TO MINIMIZE ESTATE TAXES........ 11-12
D. LIFETIME PLANNING WITH GIFTS........................................................................................................... 11-14
E. OTHER LIFETIME PLANNING TOOLS...................................................................................................... 11-17
F. CEO ACTION PLAN........................................................................................................................................ 11-18