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An executive employment agreement is a legal contract between an employer and an executive that outlines the terms of their working relationship. These agreements include information about salary, benefits, stock options or awards, vacation time allotment and more.
Term. Often, the initial term of a CEO contract is between two and five years. A key factor to consider is the variety of ways in which the term can end before the contract expires. The term and termination provisions are intimately intertwined and need to be coordinated.
An executive contract establishes key contractual obligations for the executive and the employer and typically contains more expansive terms and conditions than an ordinary employment agreement. An executive contract typically includes: Duties and responsibilities of the executive.
An Executive Employment Agreement is a legally binding document that outlines the terms and conditions of an executive employee's employment. This agreement typically includes the executive's responsibilities, compensation, benefits, and termination clauses. Employers often use templates to create these agreements.
Key Considerations for Executives Negotiating Employment Agreements Make sure the compensation is clear. ... Understand how the relationship can be ended. ... Severance is beneficial for both sides; know what triggers it. ... Be aware of non-competes. ... Be careful when relying on other promises.
When negotiating and drafting an employment agreement, a few issues that must be addressed include: Compensation and benefits. ... Job duties and scope of employment. ... Perquisites and employee benefits. ... Termination of employment. ... Post-employment limitations and confidentiality. ... Dispute resolution.
As you engage in contract negotiation with a potential employer, make sure to clarify your scope of employment, including your job title, duties, whether and how your responsibilities will evolve, requirements for a promotion, your work location and reasons for termination.
Here are some steps you may use to guide you when you write an employment contract: Title the employment contract. ... Identify the parties. ... List the term and conditions. ... Outline the job responsibilities. ... Include compensation details. ... Use specific contract terms. ... Consult with an employment lawyer.