Daily Three: August 20

1. As part of our continuing series on how to retain top talent, we’re looking at compensation today. While pay isn’t the be-all, end-all to employee retention, it is important and employees who feel that they are underpaid are far more likely to entertain another opportunity. If you haven’t done so recently, look closely at how you compensate your employees to ensure that they are being paid appropriately – both inside the company and in the industry/marketplace.  Learn more about steps employers can take to make sure that pay isn’t the reason employees look elsewhere. Authored by Laura Friedel

2. Many businesses, individuals, and organizations are working to address issues related to systemic racism, and accounting firms are no exception. To better understand the overall landscape of the accounting world, partner Russell Shapiro recently interviewed 12 highly respected accounting firm managing partners on a variety of issues – everything from financial challenges to M&A deals to employee morale. As part of this comprehensive survey, he also asked managing partners about the ways in which they were addressing systemic racism. Read more about their responses here. Authored by Russell Shapiro

3. Material Adverse Effect and/or Material Adverse Change provisions are typically included in the core purchase document in M&A transactions to allocate risk with respect to substantial events or consequences that could have a long-term and adverse impact on the target company’s business. Though the impact of COVID-19 is business specific, if a business is considering a merger or acquisition, the consequences of the pandemic should be considered as parties establish the contours of what constitutes a MAE and/or MAC. We discuss the potential implications here. Authored by Brandon Kaster

For more resources and LP's response to COVID-19, visit this webpage.