Before signing a contract, high-level executives often use an experienced employment lawyer to identify areas that can be negotiated in your favour, potentially problematic clauses to be aware of going forward, and whether more punitive portions of the contract are enforceable.
Employment lawyers at Monkhouse Law are experienced in reviewing, negotiating, and improving compensation plans in employment contracts for executives. Contact us today for a free 30 minute phone consultation. Employment Lawyers at Monkhouse Law specialize in Employment Law, Human Rights Law, and Disability Insurance Law.
Depending on the stock option plan, the executive may receive stocks of the company as part of their compensation. These stocks can only be accessed after certain conditions, which are pre-determined per their contract, have been met.
Before signing a contract, high-level executives often use an experienced employment lawyer to identify areas that can be negotiated in your favour, potentially problematic clauses to be aware of going forward, and whether more punitive portions of the contract are enforceable.
These categories are: Base Salary. Short-Term Incentives.
Similar to short-term incentives, long-term incentives are often incorporated into executives’ compensation plans to ensure that executives are productive and effective in their jobs. Long-term incentives are often offered to high-ranking executives whose work directly impacts the well-being and success of the company.
In non-qualified stock options, executives are given the right or opportunity to purchase stock from the company at a specified price. This option is favourable when the company is positioned to do well over the coming years. In the event that a company does poorly in the stock market, though, any opportunity for returns for executives selling their stocks is neutralized.
Depending on the stock option plan, the executive may receive stocks of the company as part of their compensation. These stocks can only be accessed after certain conditions, which are pre-determined per their contract, have been met.
In negotiating with an employer, you must press on whichever types of risks, as listed above, you perceive present the greatest vulnerability to the employer. Decide what you can legitimately use as a lever and who, when, and how to use the lever to bring pressure to bear.
You appeal to emotional ties and connections by triggering the guilt of a senior executive who recruited your client from a secure position elsewhere; the feeling of indebtedness of a senior executive who benefitted from your client’s hard work; the shame of a senior executive who inwardly knows that his or her failings or mistakes possibly contributed to your client’s termination; the embarrassment of a senior executive who did not give your client sufficient notice or warning of the termination to come; or the humiliation of a senior executive who could not prevent your client’s termination. It may also mean appealing to friendship and support from another higher level executive or a Board member who can influence the negotiations or who the employer’s negotiator reports to or respects.
Even when executives do not have viable claims or they decide not to bring or threaten viable claims, they still have bargaining power. This bargaining power derives from the business risks that employers face when terminating employees, including the possibility that executives may: