(1) Survey your Current Compensation and Benefits
Know what you have, what you could lose or gain, and the strategies for maximizing your position on a go-forward basis.
(2) Weigh Your Financial Risks, including those from Employer Stock
(3) Consider Your Alternatives
What is personally fulfilling? financially smart? Be sure any employment and severance agreements accurately reflect your expectations - and do not leave reasonable requests on the table.
2019.10.29 "Not Sure What to Do With Your Life? Richard Branson Says Start by Asking These 2 Simple Questions" (Inc. Magazine). The two questions are (1) What do I love? and (2) What do I dislike? See the article for the "why" behind these questions.
Although employers and board members generally consider and approve change-in-control precautions, it is often possible and smart for at-risk executives to prompt company action - because most employers want to motivate key employees to remain engaged through - and after - a transaction closes.
When Should an Executive Ask. What Protection Should An Executive Seek? A recent Law360 headline brought rabbi trusts immediately to mind. It reads "Ex-Manufacturing Co. CEO Says He's Owed $4.4M in Benefits" (4/10/2019). See the following webpage for a discussion of how a rabbi trust could have helped, and when the protections of a rabbi trust make sense for an executive to pursue: https://lnkd.in/eDtythZ.
For General Information Only
DO NOT USE WITHOUT ASSISTANCE BY COMPETENT LEGAL COUNSEL
By: Mark Poerio (email@example.com) - [Admitted DC, MD, and NY]Date: August 2019
Re: Key Terms of Employment Agreement (employer-oriented)
Presented below is a template for use as a starting point for determining the key terms of an employment agreement (“Agreement”) for a new executive. Common practices are noted in brackets, with italicized bold print. Note that there is no substitute for individualized advice that takes into account the relative positions of a company and its executive, as well as industry and market practices.
Effective Date: ____________ ____, _________
Start Date for Services: ____________ ____, _________
Term: ____ years. < 3 years >
Base Salary $_____ annually, subject to annual increases per Board discretion.
Annual Cash Bonuses
Stock Option Grant
Termination of Employment
Just Cause (defined) any of the following:
280G Tax Gross-up
Private Co. Only
< The End >
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