Although most executives go into an employment relationship expecting a long and mutually beneficial association with the business they are joining, the rights and obligations of the executive upon a termination or departure should always be negotiated prior to the commencement of employment and embodied in a written employment agreement.
We have extensive experience advising and representing executive, professional and financial sector clients in the negotiation and enforcement of employment contracts. Some of the major issues that should be addressed in such agreements include:
- Salary, bonus and other cash compensation.
- The terms of stock options, restricted stock and other equity and phantom-equity awards, carried interests, including the vesting thereof.
- The circumstances in which the employer may terminate the executive’s employment “for cause” or the executive may leave for “Good Reason.”
- The circumstances giving rise to severance payments and benefits and the terms of such packages.
- The scope and duration of any non-compete, non-solicitation, garden leave or other restrictive covenants which may restrict the ability of the executive to join a competitor or otherwise solicit clients or employees following termination of employment.