Retention Agreement

Summary

This template is a Retention Agreement that employers use for employees to remain in their jobs for a specific amount of time, in exchange for higher compensation, retention bonus money, equity, and/or other benefits. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This template is intended for private employers. It is based on federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws. This template serves as a guide to make sure that you evaluate all pertinent provisions. Given the potential tax and ERISA implications associated with retention agreements, employers are strongly advised to seek input from an experienced benefits/executive compensation attorney. For information on drafting and negotiating employee retention agreements, see Retention Agreements: Drafting and Negotiating Employee Retention Agreements.