Your company has identified and negotiated with the perfect candidate after a comprehensive search for a chief executive, chief financial or chief operating officer, C-level executives, or any other high-level executives. Now, you need an employment agreement that memorializes the deal. This step is crucial so duties and responsibilities are clear to both sides.
This agreement is a binding contract, meaning the company and the candidate exchange “considerations,” which are actions each agrees to do for the other. The company’s consideration is to pay a salary in exchange for the executive’s consideration to provide expertise that benefits the company. Our employment agreement attorneys at S.T. Legal Group can draft an executive agreement tailored to your company or review one you have been given to sign anywhere in the state. Call today to work with a Deerfield executive agreement lawyer.
Employers rely on executive employment agreements to define expectations for top-tier earners so that executives know what needs to be accomplished to earn the compensation package outlined in the document. When the agreement is unambiguous, it offers stability in the working relationship. It confirms expectations and benefits so misunderstandings do not arise later, and if they do, the document should also address their resolution.
Generally, executives are guaranteed a term of employment that may automatically renew. This gives them the assurance they will not be arbitrarily terminated and it assures the company they can count on the executive’s services for a specific amount of time. Leaving before the contract term is up is considered a breach that has legal consequences. An attorney in Deerfield can help an employer or employee understand the terms of an executive agreement.
All executive agreements have some similar provisions, such as naming the parties, the title the executive is assuming, and how long the contract term lasts. The executive’s responsibilities address who they report to, whether they have hiring and firing authority, input when adopting budgets, and whether they will serve on the Board of Directors. Some additional negotiated terms could include:
The lawyers at S.T. Legal Group offer 90-minute paid consultations for clients with questions regarding Deerfield executive contracts.
The Federal Trade Commission has issued a final rule to ban non-compete agreements nationwide, which means future executive agreements cannot prevent employees and senior executives from seeking employment with competitors. Senior executives, representing less than one percent of the workplace and who are subject to non-compete clauses, must adhere to them. However, other employees who previously signed non-competes will be released from them. Talk to a Deerfield executive agreement attorney to ensure employment agreements cannot be struck for restrictive covenants.
Employment agreements bind your executives to the conditions and performance criteria you negotiate. They offer protection for both parties, enhancing your business with desired talent and providing the framework for action if the relationship does not work out, even to the point of litigation, which our team handles.
If you are anywhere in this state, S.T. Legal Group offers free case evaluations and paid consultations to ensure the documents you use to run your business are airtight and legal. We also consult with C-level executives to explain the advantages and repercussions of employment agreements they have been asked to sign. Contact our office to schedule a consultation with a Deerfield executive agreement lawyer.
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