Executive Separation Agreement Negotiation (Pro-employer)

Summary

This practice note offers advice on how you can help an employer protect its interests and obtain its objectives when negotiating separation agreements with executive employees. Many employers believe they owe executives nothing after employment ends. If they choose to offer any severance, they usually offer just enough to make it difficult for the executive to turn down. The employer asks for a general release and presents the executive with its standard separation agreement to sign. The employer contemplates no negotiation, but many executives push back nevertheless. Based upon what they see as fair, many executives want more severance than the employer offers and fewer post-employment restrictions than the employer seeks. Employers ultimately must choose whether or not to negotiate. Just saying "no" is not negotiating.