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Employees at bankrupt US Airways have agreed to take concessions in return for four seats on the 15-person board of directors and for restricted preferred stock in the company.

In a July 21 opinion piece by David Brodwin, US News and World Report described the

USAir union groups have agreed to substantial wage concession in return for a 20% ownership stake in the company and four seats on the board. Other investors must approve the plan.

The pilots union and USAir have agreed on a transaction that would involve substantial concessions in pay and work rules by the pilots in return for board representation and stock. The proposal would only become effective if other labor groups at USAir reach a settlement.

Efforts to trade concessions for ownership at USAir have broken off. Both sides say they are too far apart to reach agreement and will not revisit the issue until contracts expire in 1997.

In a December 12 blog post, the US Department of Agriculture announced

The Web site mystockoptions.com has published a valuable analysis of how the new tax law will affect equity compensation practices and administration.

Tax reform legislation introduced by Representative Charles Rangel (D-N.Y.) would impose a tax on synthetic equity held in S corporation ESOPs.

Many closely held companies, especially those aiming for a sale or an IPO, base their grants of equity awards on a percentage of the company.

One of the trickiest issues for ESOPs is how to balance executive equity incentives with an ESOP. The problem has become more complicated as more ESOPs become 100% owned by the plan.