Time to Dust Off Those Change-in-Control Agreements

CIC provisions that appear reasonable when written can prove sufficiently unpleasant in the heat of a potential transaction to unwind the deal or result in unfavorable pricing, while executives discover their benefits will be much lower than they anticipated.

To avoid such scenarios, banks should review their CIC arrangements and make needed adjustments before a deal is imminent that will help ensure a much greater portion of intended executive benefits is delivered in a tax-efficient manner.