Bruno Fagali is an attorney who lives and works in Sao Paulo, Brazil. He has his own law practice, Fagali Advocacy, and also works for the ad company Nova / SB as its corporate integrity manager. He has 12 years of experience and is a graduate of the University of Sao Paulo. He has earned additional legal specialization at the Getulio Vargas Foundation.
The website for Fagali Advocacy includes a page where Bruno Fagali posts his thoughts about various legal issues he finds interesting. One of these was about a law regarding the name and logo of companies on the sides of the bags they give customers. Brazil has a law about this which states that if you hand the grocery bag out for free the grocery store can put their name and logo on it. If they charge for the grocery bag, though, they are forbidden from doing so.
The law about this is found in articles 6, item IV in the Consumer Defense Code, Bruno Fagali says. The reason for the law, he says, is that it is pretty ridiculous to charge customers for a grocery bag that is then free advertising for the company. If grocery stores want this free advertising then they shouldn’t be charging customers for it which is basically having it both ways.
Bruno Fagali has been with Nova / SB since December 2015. He was brought in by this company when their new code of conduct regarding corruption was put in place. They needed someone to develop, explain, and enforce this code of conduct which is meant to make this company transparent in their procedures. Due to his good work in this role Nova / SB has twice been given the Pro-Ethics label which is handed out by the Ministry of Transparency and Controller General of the Union.
This Pro-Ethics label, which Bruno Fagali is largely responsible for Nova / SB achieving, indicates that his company meets the highest standards of ethics and integrity throughout its business activities. His company received this honor in person and he was joined by the top executives of the company.
See http://www.revistafatorbrasil.com.br/ver_noticia.php?not=320250 for more.
Jeremy has been a business lawyer and legal advisor with an experience spanning over fifteen years. He observes that most of the companies that he deals with have decided to abandon the stock option of rewarding employees. This could be a trend triggered by numerous factors.
If the stock value of a company is not stable or if it drops then that may mean that the employees will have to wait for a while until the stock goes back up or they may no longer be able to exercise their options. The company, however, will still be required to forward a financial report and the shareholders who might not be workers of the company will face an overhang.
The current trend in the economic world is not very stable, and employees are also not willing to gamble with their money or benefits. The downturns might make all the options available worthless. There is also the issue of having relevant financial costs to go way higher than the expected economic advantage.
However, for the companies that have decided to retain this method of compensation, employees enjoy numerous advantages. It gives motivation for the laborers to work at making the company produce a maximum profit since their earnings will be boosted if the company’s share value rises.
Some service rules that are made internally may make it difficult to award employees with equities because the company might have to pay higher taxes. This will not be possible when using the stock option to compensate employees.
Jeremy came up with a system that benefits the employees while still using the stock option. He shows companies how the knock-out system works.
The system uses the same investment options as the stock option. The difference comes in during the claiming of the rewards. Employees can lose them if the company’s shares fall under a certain amount. However, they only lose after the stock has stayed down for more than a week.
This system protects non-employee shareholders from the overhang threats. It also reduces the compensation amount for the top executives of the companies considerably. Another advantage, especially for a volatile company, is that it minimizes the accounting costs. Learn more: https://bestlawfirms.usnews.com/profile/jeremy-l-goldstein-associates-llc/overview/70073