One-time Events Require Tried-and-true Expertise

Whether a one-time event is planned far in advance like a merger or acquisition or sprung upon you like a resignation of a key executive, these events often have an impact on equity awards. The effect of these events varies depending on the award's plan documents and require thoughtful analysis and calculation. Allow our experience to help you from the smallest modification to the largest business combination, and everything in between, and ensure that your financials and disclosures are appropriately displaying the business impact of one-time events.

Solutions for a Variety of One-time Events

From the modification of one award, to option exchanges or repricings, to monumental corporate transactions, Aon's Equity Services team has expertise on all things equity to make these one-time events as simple as possible.

Our common services for one-time events include:

  • Valuation and financial reporting support for modifications, whether due to resignation or reduction-in-force modifications
  • Design modeling and advice for underwater stock option exchanges, including shareholder outreach, proxy composition and tender offer support
  • Design, data conversion and financial reporting assistance for mergers, acquisitions and spinoffs
  • Plan design modeling and advice for one-time retention grants
  • Calculation and disclosure assistance for potential change-in-control payments under IRC Section 280G

No matter how large or small the one-time event is, our team of valuation, accounting, governance and tax experts is ready to help make it as painless as possible.


Adding Complexity: Solutions for Equity Conversions in Corporate Transactions

One of the key, yet often neglected, items in any corporate transaction is determining the treatment of outstanding employee equity awards. The strategic question is how a company "fairly" treats employees' equity awards to meet corporate objectives while avoiding an administrative nightmare. Aon's Equity Services team works with top finance and human resources leaders at companies to assist in all steps of the corporate transaction lifecycle.

We provide a full suite of advisory services covering:

  • Consulting on overall business objectives, including impact to the financials, dilution, shareholder opinions and communication
  • Proper treatment of employee equity due to a corporate transaction, whether it be a merger, acquisition, spin off, etc.
  • Purchase price allocation for business combinations pursuant to ASC Topics 805 and 718
  • Consulting for granting philosophies and equity designs for a combination of companies or creation of new companies
  • Post-deal accounting under ASC Topic 718

Corporate transactions are already very stressful to all of those involved. Our ability to provide insight from a compensation philosophy, financial theory, and governance point-of-view will assist any company navigating a corporate transaction with thinking holistically through every decision.

Services for Potential Change-In-Control Payments Under IRC 280G

Part of navigating a corporate transaction is determining if the executive team has an excise tax exposure under IRC 280G and 4999. A clear understanding of the liabilities and potential loss of corporate tax deductions that occur as a result of the transaction is important to the acquiring company.

Our team of experts can assist you in navigating this exposure by:

  • Determining the excise tax exposure for individual employees
  • Determining the “walk away” value for the employees
  • Mitigating strategies to help reduce or avoid excise tax exposure
  • Assisting with due diligence
  • Assisting with required public filings surrounding the transaction
  • Performing “What If” calculations for future transactions

Our team also produces annual tally sheets for board meetings and the proxy termination tables under Potential Payments Upon Termination or Change in Control. Being a full-service firm allows us to address this situation (and more) holistically with experts in corporate governance, equity compensation, executive compensation and health & welfare benefits.

Contact Us

Let us know how we can help and a member of our team will be in touch shortly.

The Rewards Solutions practice at Aon and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.

If you do not wish to receive these communications, please check here: