Employee Incentive Compensation and the Role of Rule 701

A Practice Note discussing the safe harbor exemption from registration under Rule 701 of the Securities Act for equity securities issued as employee compensation. It discusses Rule 701 eligibility considerations, including the requirements for issuer, participant, and securities eligibility and issuer disclosure obligations. The Note also describes limitations on resales of securities sold under Rule 701 and the interaction between the Rule 701 exemption and the registration threshold under Section 12(g) of the Exchange Act.

Practical Law Corporate & Securities


The full text of this resource is available by logging in or by requesting a trial. If you have any questions, please contact us or your Practical Law Account Executive.

Free trial

A free trial will give you:

Unlimited access to our online legal know-how services during the trial period
Full training and support
Four issues of Practical Law The Journal, the companion to Practical Law online
Weekly update e-mails on current legal developments in your practice area

Log in using Practical Law username

Only use this login if you have not set up OnePass for Practical Law

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247293317468", "objName" : "ACT_OWNED - READ_ONLY - 6-500-5315", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/6-500-5315?null", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-3b01f5d1:15b1e48f92a:-2000", "analyticsSessionCookie" : "2-3b01f5d1:15b1e48f92a:-1fff", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }