Executive Employment Agreements: Terms Worth Negotiating
By Dion Macbeth, California attorney
An executive employment agreement should make expectations clear before the relationship becomes difficult. Compensation is only one part of the risk and value the agreement allocates.
Compensation needs a complete definition
Review base salary, bonus metrics, equity vesting, benefits, deferred compensation, expense reimbursement, and what happens to each component after resignation, termination, disability, or a change in control.
Exit terms can shape the relationship
Notice, severance, cause, good reason, confidentiality, intellectual property, non-solicitation, cooperation, and dispute-resolution provisions should be aligned with the executive's role and the employer's legitimate business needs.
Common Questions
Further Detail
It defines protections or payment that may apply when the company is sold or control changes, subject to the agreement's specific triggers and conditions.
A short agreement can contain significant release, forfeiture, or restriction language. Review is especially important when compensation or equity is involved.
Legal Guidance
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Contact Harrington Wells to request an initial review. The firm will determine whether the matter falls within its current scope and capacity.
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