What will your job title be? What are your job duties and responsibilities? What type of support will the company provide, in terms of personnel; technology; continuing education; travel and other expenses?
Compensation
First, what is your base salary? Does this reflect the value you will bring to the company? Is it fixed? Under what circumstances can it be reduced?
Are performance bonuses part of your compensation package? If so, what are the specific triggers for payment of a performance bonus? Are bonuses subject to approval by the board of directors?
Is a signing bonus on the table? If you are giving up benefits or bonuses at your current job to take this new position, a signing bonus should be negotiated, in an amount sufficient to make you whole.
Benefits
What benefits does the company offer its executives? What is the cost to you (and to the employer) of the benefits package? Does the agreement offer any protection to you and your family upon your disability or death?
Equity
Will you have an opportunity to gain a stake in the company you are helping to grow? Under what terms?
Termination of Employment Relationship
Will your employment be for a fixed term? Does the agreement provide for early termination, for cause and without cause? What constitutes “cause” for terminating the agreement? If the agreement is terminated early, what protections are in place for you and your family?
Confidentiality
Does the proposed agreement contain a confidentiality provision? Is “confidential information” narrowly defined within the parameters of the law? How long does this provision remain in effect?
Noncompetition/Non-solicitation
Does the agreement prohibit you from competing with the employer after the termination of your employment relationship? Is the scope of this provision narrowly defined? How long does this provision remain in effect? Are you prohibited from soliciting the employer’s clients and employees? This prohibition, too, must be narrowly circumscribed to protect your interests, as well as the employer’s.
Liability
Does the company currently offer any form of liability protection to its executives (e.g., directors and officers (D&O) liability insurance)? Will the company agree to indemnify you for actions performed within the scope of your employment?
Dispute Resolution
How will disputes under the agreement be resolved – mediation? arbitration? litigation? Who will pay your attorney’s fees incurred in resolving the dispute?
Change in Company Control
What protections are available to you if there is a change in control of the company?
Contact the New York Executive Employment Lawyers at Hiller, PC
A thoughtfully negotiated and well-crafted written employment agreement is the surest way to protect your interests as you embark on a new employment venture. At Hiller, PC, our knowledge of the law and experience working with executives in a variety of industries allow us to negotiate from a position of strength and obtain favorable terms on your behalf. To schedule a free consultation with a top New York executive employment lawyer, call us today, at (212) 319-4000, or use the email form on this page to tell us about your situation. Don’t sign anything without talking to us first.