Executive Employment Agreements: 10 Key Issues To Get Right

Key Takeaways:

• Executive employment agreements should be drafted with the full employment lifecycle in mind, as seemingly routine provisions can significantly affect compensation, severance, tax treatment, and future disputes.
• Bonus, equity, and severance arrangements should be carefully coordinated with applicable tax rules, benefit plans, and corporate governance requirements to avoid unintended consequences.
• Clear definitions and consistent drafting throughout an agreement can help preserve flexibility while reducing legal and financial risk.
• Restrictive covenants, whistleblower protections, disability provisions, and change-in-control arrangements continue to require close attention as legal requirements and enforcement priorities evolve.