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Brady McDaniel is an associate in the firm’s Employee Benefits and Executive Compensation practice group. His practice covers tax-qualified retirement plans, health and welfare plans, equity compensation, and executive compensation. He also advises on employee benefits and compensation issues in corporate transactions.
- Advised employers on changing their tax-qualified retirement plan benefit structure, including changing benefit formulas in defined benefit plans.
- Advised employers on compliance with nonqualified deferred compensation rules, including Section 409A of the Internal Revenue Code and the Federal Insurance Contributions Act.
- Assisted an employer in reviewing its health and welfare plan documents and summary plan descriptions for compliance with Title I of ERISA.
October 3, 2018, Inside Compensation
As part of the Tax Cuts and Jobs Act of 2017, Congress enacted new § 4960 of the Internal Revenue Code. Section 4960 imposes an excise tax on certain executive compensation paid by tax-exempt organizations – similar to the $1 million limit on deductions for compensation paid to highly paid executives in for-profit companies under...… Continue Reading
May 1, 2018
WASHINGTON—Covington advised Elbit Systems Ltd. in its $120 million acquisition of the assets and operations of the privately owned U.S. company, Universal Avionics Systems. Elbit Systems is an international high technology company engaged in a wide range of defense, homeland security, and commercial programs throughout the world. Universal Avionics is a ...
April 17, 2018, Inside Compensation
Part of Our Series on the Tax Cuts and Jobs Act of 2017 When an employee exercises a stock option or receives shares of stock from the settlement of a restricted stock unit (or “RSU”), generally the employee has income based on the value of the stock received. Income tax and Social Security and Medicare...… Continue Reading
January 22, 2018
WASHINGTON—Covington advised Bacardi Limited in its definitive agreement to acquire Patrón Spirits International AG and its PATRÓN® brand, the world’s top-selling ultra-premium tequila, from John Paul DeJoria, a founder of Patrón. The transaction reflects an enterprise value for Patrón of $5.1 billion. The transaction follows the successful relationship the ...
December 26, 2017
SILICON VALLEY—The Financial Times has recognized Covington among the most innovative firms in 2017 in the category of "Enabling Business Growth," for advising "Tencent in its acquisition of a $8.6bn majority stake in Supercell, the Finnish gaming company, while maintaining Supercell’s creative culture and retaining its employees by introducing incentive ...
Covington Represents Tencent in $8.6 Billion Acquisition
June 21, 2016
SILICON VALLEY—Covington advised Tencent Holdings Limited, a leading provider of internet service in China, in connection with its acquisition of a majority stake in Supercell from SoftBank. A consortium established by Tencent will acquire up to 84% of Supercell for $8.6 billion in a transaction valuing Supercell at approximately $10.2 billion. Supercell is a ...
December 8, 2015
NEW YORK, December 8, 2015 - Covington represented Ascension, the nation’s leading Catholic and non-profit health system, in a $200 million investment transaction with TowerBrook Capital Partners in Accretive Health, a leading provider of revenue cycle management services to healthcare providers. The transaction is expected to close in the first quarter of ...
July 29, 2015, Inside Compensation
White House budget proposal released earlier this year would eliminate several methods used by certain taxpayers to convert after-tax contributions into Roth amounts. Although such a change would likely require congressional action, taxpayers who use or are considering these methods should be mindful of the proposed change. The “Backdoor” Roth Contribution Roth ...
March 30, 2015, Inside Compensation
In 2010 the DOL published a final regulation requiring plan administrators of participant-directed individual account plans to disclose fees, expenses, and certain other plan information to participants and beneficiaries. The regulation requires plan administrators to provide these disclosures on or before the date on which a participant or beneficiary can first ...
January 23, 2015, Inside Compensation
Employers should consider reviewing their procedures for withholding and paying FICA tax in light of the recent district court decision in Davidson v. Henkel Corp. The court concluded that the employer was liable to participants in a nonqualified deferred compensation plan for failing to withhold FICA tax in a manner that would have decreased their...… Continue ...
December 1, 2014, Inside Compensation
The IRS has updated its model Special Tax Notice (sometimes called a “402(f) Notice”) for certain changes in the law since 2009. Employers should review their Special Tax Notices to incorporate required updates. When a tax-qualified retirement plan allows lump-sum distributions (or installments over fewer than 10 years), the plan must allow the recipient to...… ...
October 7, 2014
LONDON, 7 October, 2014 — Covington & Burling advised Horizon Discovery Group plc, an AIM listed international life science company supplying research tools and services to organizations engaged in genomics research and the development of personalized medicines, on the acquisition of Sage Labs Inc. for a total of approximately $48 million (£29 million), ...
August 27, 2014, Inside Compensation
When a defined contribution plan terminates, the plan administrator must distribute participants’ accounts as soon as administratively feasible. However, participants do not always update the plan administrator when their contact information changes, and some participants may not be responsive when the plan administrator requests directions on how to distribute ...
August 26, 2014, Inside Compensation
Kodak recently announced that it is increasing the benefits provided under its defined benefit plan. Kodak will credit an additional 3% of pay each year under its cash balance pension plan instead of making a matching contribution of up to 3% of pay under its 401(k) plan. In connection with this change, Kodak announced that...… Continue Reading