SEC Proposes Significant Amendments to Rule 701 and Form S-8 to Better Align with Current Employment Practices
December 1, 2020
Authored by: R. Randall Wang and Vicki Westerhaus
The SEC recently approved proposed amendments to rules governing the offer or sale of securities to employees through compensation programs. The proposed changes to Rule 701 — which exempts sales of securities by privately held companies made to compensate employees, consultants and advisors — and Form S-8 – which is the form used to register the sale of public company securities to employees and others — are designed to modernize the framework for compensatory securities offerings in light of the significant evolution in such offerings and the composition of today’s workforce.
We have prepared a client alert describing the amendments that can be found here.