Crescent Moran Chasteen authored an article for Governance Intelligence discussing the risks for companies experimenting with crypto-based compensation. A recent Seoul court decision against Wemade Co. highlights a growing legal and governance blind spot for companies in the crypto and Web3 space. Courts may not be swayed by the novelty of “token” language — they’ll ask the same basic questions: Was a promise made? Did employees rely on it? If the answer is yes, traditional contract and employment law may apply.
The article includes considerations for corporate boards and how companies can design incentives that inspire without trapping the company. Crescent reminds c-suite executives and corporate board members:
“For boards and GC, the takeaway is simple, stress-test your compensation plans now. A few careful adjustments can preserve flexibility, protect governance and still keep employees motivated. Take action now to prevent the next multimillion-dollar issue.”
Read the full article.
Crescent Moran ChasteenCo-Chair, Executive Compensation + Benefits