When you find yourself in the situation of being offered an executive compensation package, an employment agreement or a severance package that requires you to sign a written agreement, you need to seek legal counsel because there may be a number of provisions in the agreement that are not favorable to you.
We are experienced in reviewing and negotiating employment, executive compensation, and severance agreements. If your employer asks you to sign an employment or executive compensation agreement, we can help you review the terms, and negotiate a more favorable package for you.
If you are being offered an executive compensation agreement, there are likely to be a number of issues that you need an attorney to review very carefully before signing. The issues that can arise include:
- Deferred compensation
- Stock options
- Restricted stock
- Tax gross up and loans
- Retirement benefits
- Medical, dental, disability and life insurance
- Expense reimbursements
- Travel perks
- Relocation benefits
- Legal and tax fee reimbursement
- Post retirement medical and life insurance
- Scope of termination for cause
- Severance benefits
- Change of control provisions
- Restrictive covenants
- Non-solicitation agreements
- Confidentiality clauses
- Arbitration provisions
These are just some of the many issues you have to face in signing an employment agreement.
At the end of your employment, you may be asked to sign a severance agreement. Severance agreements are agreements in which your employer agrees to give you a number of benefits, including salary continuation, outplacement assistance, and a continuation of your health insurance in exchange for your agreement not to sue your employer for any claims arising out of your employment. Severance agreements can be incredibly complex, and if not carefully reviewed before you sign, you may have obligated yourself to a non-compete or non-solicitation clause, which could seriously impair your ability to take a new job.
If you need help understanding your employment, executive compensation or severance agreement, call us at 202-589-1834 or email us.