Executive Employment Agreement Negotiation and Drafting (Pro-executive)

Summary

This practice note explains how to effectively represent executives in negotiations concerning executive compensation agreements. Executive employment agreements will likely differ from employment agreements with rank-and-file employees in two major respects: the amount of compensation involved and the different ways in which it is paid. Not only are the amounts usually significantly larger, but the various forms of compensation available (e.g., salary, annual bonuses, long-term incentives, equity, perquisites, etc.)make an executive employment agreement quite a complex undertaking. As a result, executive compensation agreements can create a whole host of tax and other legal issues that you need to address with your client and your client's employer. An effective executive compensation package will incentivize loyalty, accountability, and performance for the mutual benefit of the employer and the executive.