Executive Employment Agreement Negotiation and Drafting (Pro-employer)


Summary

This practice note discusses the negotiation and drafting of executive employment agreements from the perspective of the employer. Employment agreements are common for top executives at both privately held and publicly traded companies. They typically set forth the executive's ongoing responsibilities and compensation opportunities, as well as the consequences of employment terminations in various scenarios. They also usually include various covenants that bind the executive. In drafting these agreements, you also need to consider various tax issues as well as (for public companies) the potential reaction of shareholders.