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Executive or CEO Compensation or Severance Agreements

Negotiating executive or CEO compensation or severance agreements requires extensive legal and tax expertise.  The experienced business attorneys at Allen Barron have extensive experience guiding negotiations and creating executive compensation agreements.  Our attorneys are also prepared to negotiate executive severance agreements to help smooth leadership transitions.  Each presents unique challenges and opportunities.

Executive pay for Fortune 500 companies in the United States has never been higher.  The recent trend to tie executive compensation to performance metrics has aligned corporate goals with leadership impact and associated incentives.  However, the associated metrics must be carefully evaluated and established.  When set too low, these metrics can result in overpayment for executives without deriving full value for performance.  Setting these bars too high can drive off otherwise successful leaders who may be a good fit for your company.  Decisions regarding stock options and other incentives must be balanced with long term corporate goals and associated tax implications for both the company and the recipient.

Executive severance packages must balance the corporate interests of trade secrets, non-compete and separation compensation with the needs of the individual to maintain viable options for re-employment.  Executives should always have a severance agreement reviewed by a skilled attorney to protect their interests and prevent unfair limitations from affecting future opportunity.  Any income or equity that is fully vested should be accounted for.  The company must ensure the separation agreement contains all relevant releases, assignment of intellectual property, and a clean break that allows for future investment as well as the ability to attract a strong new candidate.

Allen Barron provides counsel to executives, CEOs and corporations through all phases of executive employment.  Negotiating executive or CEO compensation or severance agreements requires extensive knowledge crossing many professional disciplines.  Allen Barron integrates these disciplines in a single vendor providing more thorough insight into all aspects of executive level employment.  If you are responsible for negotiating executive or CEO compensation or severance agreements or are an executive in transition we invite you to contact us or call today for a free consultation at 866-631-3470.