Negotiating your executive compensation package can be complex and challenging. Make sure you get the most favorable terms by working with the executive compensation lawyers at The Noble Law. We can assist you in negotiating every aspect of your employment agreement, including bonuses, equity and stock options, severance pay, non-compete provisions, and more. If you are in a contract dispute with your employer, we provide effective representation to make sure your rights are protected. Contact us in North Carolina or South Carolina to schedule a consultation.
When you are hired at the executive level, it is because the company sees immense value and potential. Your greatest bargaining power is usually at the start of your employment, so it pays to consult an attorney when negotiating contract terms.
A little planning can reap great benefits. Consult a lawyer at The Noble Law during contract negotiations to minimize the risk of unfavorable terms that could lead to conflicts down the line. If a contract dispute has already emerged, either during contract negotiation or at the time of separation, we can fight to make sure your best interests are served.
Employment Contracts
The nature of executive employment contracts is such that their impact can reach well past the term of employment. At The Noble Law, our lawyers provide skilled and aggressive representation for those negotiating executive contracts as well as those engaged in related disputes.
Consult with an experienced executive compensation lawyer about the terms of your proposed employment contract. At The Noble Law, we assist clients at each stage of the process, from drafting proposed terms at the start of the business relationship to resolving severance disputes at the end of your employment. We can also answer any questions you have over how the terms are being applied during employment and can represent your interests if conflicts arise.
Gender Gap and Glass Ceiling
The gender gap and glass ceiling affect positions from the lower rungs to the top of the corporate ladder. According to Business Insider, a study based on crowdsourced jobs by ExecThread found that men were presented with more and higher-paying executive job opportunities, including openings for VP, SVP, and C-suite level positions.
Unfortunately, many women do not fully grasp their worth. A seasoned lawyer at our female-owned employment law firm can help you place an accurate financial value on the contributions you bring to an organization and negotiate for fair compensation. At The Noble Law, we negotiate favorable terms for women and other minorities who are often victims of a glass ceiling. In cases of gender pay discrimination, we are here to fight for a remedy by filing a discrimination charge and, where warranted, a lawsuit.
Breach of Contract
Executive employment contracts are binding on both the employer and the employee. When faced with a breach of contract, an employee – even one at the executive tier – may be intimidated by the prospect of raising the issue. The lawyers at The Noble Law help clients protect their rights when a contract is violated by offering knowledgeable advice, communicating with employers to work out conflicts over contract terms, or filing a breach of contract lawsuit when warranted.
Non-Compete Agreements
A potential point of contention in an executive compensation arrangement is the inclusion of a non-compete agreement. From the company’s perspective, non compete agreements serve to protect proprietary information and valuable contacts. From the employee’s standpoint, they can unreasonably restrict one’s ability to earn a living.
Covenants not to compete are not enforceable in every situation. Some of the variables include the wording of the agreement, the circumstances under which it was signed, the motives of the company in imposing it, and the state with jurisdiction to hear a challenge to the contract.
An employment attorney may be able to negotiate a more favorable non-compete at the beginning of your employment or potentially even a cancellation of its terms as part of a separation from the company. The analysis is fact-specific, so call The Noble Law to speak with an experienced lawyer if you believe the terms of your non-compete agreement may be unfair.
Severance Agreements
Negotiating your employment severance package before you are hired is likely to put you in a better position if a separation occurs. Negotiable terms vary by the situation, but they can include the amount paid, whether it is paid as a lump sum or over time, types of benefits to be paid or extended, confidentiality requirements, non-compete clauses, and a release of claims against the company.
Many executives do not know their worth, and even those who do may not know what is customary in the industry when it is time to negotiate or exercise severance agreements. An experienced executive compensation disputes lawyer at The Noble Law can help you with your separation agreement at the beginning or end of employment.
Key Components of an Executive Employment Contract
Bonuses and Incentives
These often include cash disbursements, equity-based incentives, and signing, retention and performance-based bonuses. This type of compensation is often used to reward performance and align an executive’s compensation with the company’s success. As such, they can prove very lucrative under the right circumstances, and help foster a long-term, mutually profitable relationship between you and the company that values your services.
Equity and Stock Options
Executives routinely receive various types of equity and stock options, including:
- Incentive stock options—offer tax advantages; taxes are typically deferred until shares are sold, if the requisite holding period is met.
- Non-qualified stock options—more flexible, but lack the tax benefits of incentive stock options.
- Performance shares—designed to reward executives when certain performance benchmarks are reached.
When negotiating for your equity and stock options, we will carefully review vesting schedules, exercise prices, expiration dates, and other factors to determine the arrangement that maximizes your total comp and limits your downside risk.
Benefits and Perks
Benefits and perks provide an opportunity to individualize your executive employment contract to best support your professional, financial, and personal needs. These can range from must-have benefits to novel perks, and include:
- Health insurance
- Retirement accounts
- Relocation assistance
- Transportation
- Security services
- Additional vacation time
- Memberships to gyms, clubs, and other organizations
- Executive parking privileges
For every component of your executive contract, the experienced employment law attorneys on our team can help you assess the offer, identify potential leverage points, and negotiate for the best possible terms.
Navigating Executive Compensation During Mergers and Acquisitions
With all of the change and disruption that accompanies a merger or acquisition, executive compensation packages are often subject to transition.
What will happen if the company you work for acquires or merges with another? Is your compensation protected? The answers to these questions are often very fact-specific. An experienced employment attorney can advise you on the effect a merger or acquisition will have on your compensation package, as well as devise strategies to safeguard future earnings.
Golden Parachute Clauses
Golden parachute clauses protect the financial interests of CEOs, CFOs, and other high-ranking employees who leave a company as a result of an M&A.
Perks that may be included in golden parachute clauses include:
- Severance pay
- Additional stock options
- Accelerated vesting of existing stocks
- Accelerated availability of pension funds
- Extended medical benefits
Non-Compete and Confidentiality Agreements
Non-Compete Agreements
Non-compete agreements can significantly impact your career, limiting where and when you can work in the future. Whether it’s renegotiating the non-compete, clarifying its scope, or determining whether the non-compete is enforceable, our attorneys can provide valuable insight to minimize the disruption a non-compete may cause and ensure that you maximize the market value of your talent.
Confidentiality and Non-Disclosure Agreements
Confidentiality agreements often prohibit executives from sharing sensitive company information, even after leaving the company. While these clauses are essential for protecting the employer’s interests, they can also expose executives to significant legal risks if not properly structured. Our team guides you through what to look for, including exceptions for publicly known information, protection of your rights to disclose unlawful conduct, and other critical details.
Executive Compensation in Different Business Life Cycles
Start-Ups vs. Established Companies
With start-ups, compensation packages may involve a greater emphasis on equity, stock options, and long-term incentives, as cash flow may be limited. On the other hand, established companies often offer more traditional salary-based packages, but the trade-off could be less equity or long-term incentives.
Our attorneys can assess the risks and benefits of each scenario to help you secure a compensation package that aligns with your career goals, risk tolerance, and financial needs.
Public vs. Private Companies
The compensation dynamics also differ significantly between publicly traded and privately held companies. Executives in public companies often face more complex compensation structures, involving stock options, performance-based bonuses, and regulatory requirements.
In contrast, private companies typically offer more flexibility in their agreements but may have different considerations around equity ownership and exit strategies. Regardless of your company’s status, The Noble Law can help you negotiate a compensation package that maximizes benefits and positions you for long-term success.
Tips for Negotiating Favorable Terms
The contract negotiation stage is your chance to start this next phase of your career on the best possible terms. With a skilled employment law attorney on your side, you can make the most of this opportunity.
Some of the keys to negotiating successfully include:
- Know your value: What is the typical compensation package for your role? How do your unique qualifications set you apart from the norm? By starting with these questions, we can establish a starting point for successful negotiations.
- Don’t focus on just one thing: From baseline compensation to benefits, incentives, and perks, an executive employment package contains many elements. Consider the entire package when negotiating. Sometimes, giving a little in one area can actually place you in a stronger overall position.
- Be specific: The last thing you want is to be surprised by something in your contract months or even years into your tenure. Nail down the specifics during contract negotiations so there is no room for uncomfortable (and potentially costly) disputes in the future.
- Look ahead: Whether you are just starting your career or much further along, your contract negotiations must prepare you for a future after this position. Severance agreements, retirement packages, non-compete agreements, and other specifics will play a strong role in shaping your future after you depart from your present employer.
The attorneys at The Noble Law know how to identify leverage points in executive contract negotiations—and use that leverage to the maximum benefit of our clients.
Considerations for Executives in North Carolina and South Carolina
State laws may influence the drafting, enforceability, and litigation involving executive employment contracts.
In both North and South Carolina, for instance, non-compete agreements are generally treated more favorably than they are in many other states. Nonetheless, our courts require these agreements to be reasonable in scope and duration, and in many cases will disregard non-competes that do not fall well within these guidelines.
Other employment law issues that can vary from state to state include wage transparency, pay equity, and paid sick leave.
This is why it is important to work with an employment lawyer who possesses an in-depth knowledge of the laws in your state. At The Noble Law, we handle executive employment matters for clients from Raleigh to Charleston and beyond. We stay up-to-date on these crucial matters to provide our clients with the cutting-edge representation they expect and deserve.
Speak With an Executive Compensation Lawyer Today
The Noble Law is a dedicated employment law firm serving clients in North Carolina and South Carolina. We help take the stress out of contract negotiation and enforcement. If you have questions about your executive compensation plan or any of its components, call us today to discuss with one of our professionals.