Severance Agreement between Publicly Held Corporation and Executive - Change in Control Severance

• Category: Employment - Severances
• State: Multi-State
• Control #: US-1340958BG
• Format: Word; Rich Text

Description

A severance agreement is a contract between an employer and an employee that contains rules and guidelines for when an employee is terminated. A severance agreement template should include details like how much pay the employee will be entitled to after termination, when benefits will be discontinued, etc. A Severance Agreement between a Publicly Held Corporation and Executive — Change in Control Severance is a contract that outlines the terms and conditions of an executive's separation from employment due to a change of control in the ownership of a publicly held corporation. This agreement typically stipulates that the executive will receive a specified amount of money and other benefits, such as health insurance coverage, in exchange for a release of any potential claims the executive may have against the company. It also typically provides the executive with a severance package of salary, stock options, and other compensation, along with a non-compete clause. There are four main types of Severance Agreement between a Publicly Held Corporation and Executive — Change in Control Severance: single-trigger severance, double-trigger severance, involuntary termination severance, and voluntary termination severance. Single-trigger severance is when the executive receives a severance package upon the occurrence of a change of control, regardless of whether the executive is subsequently terminated. Double-trigger severance is when the executive receives a severance package if there is a change of control and the executive is subsequently terminated. Involuntary termination severance is when the executive receives a severance package if the executive is terminated without cause. Finally, voluntary termination severance is when the executive receives a severance package if the executive voluntarily terminates their employment.

A Severance Agreement between a Publicly Held Corporation and Executive — Change in Control Severance is a contract that outlines the terms and conditions of an executive's separation from employment due to a change of control in the ownership of a publicly held corporation. This agreement typically stipulates that the executive will receive a specified amount of money and other benefits, such as health insurance coverage, in exchange for a release of any potential claims the executive may have against the company. It also typically provides the executive with a severance package of salary, stock options, and other compensation, along with a non-compete clause. There are four main types of Severance Agreement between a Publicly Held Corporation and Executive — Change in Control Severance: single-trigger severance, double-trigger severance, involuntary termination severance, and voluntary termination severance. Single-trigger severance is when the executive receives a severance package upon the occurrence of a change of control, regardless of whether the executive is subsequently terminated. Double-trigger severance is when the executive receives a severance package if there is a change of control and the executive is subsequently terminated. Involuntary termination severance is when the executive receives a severance package if the executive is terminated without cause. Finally, voluntary termination severance is when the executive receives a severance package if the executive voluntarily terminates their employment.