Executive employment agreement checklist: What you need to know
If you are an executive negotiating your employment agreement, there are several key provisions to look out for to ensure that your interests are properly protected. Here is a checklist of some of the most important items to consider:
1. Compensation: Make sure that your compensation package is clearly defined and includes not only your base salary but also any bonuses, stock options, and other benefits that you are entitled to.
2. Termination provisions: Check the termination provisions to ensure that you have a fair and reasonable notice period and severance package in case of termination without cause.
3. Non-compete and non-solicitation clauses: Look for any non-compete or non-solicitation clauses that may restrict your ability to work in the same industry or with the same clients after you leave the company.
4. Change of control provisions: Check whether the agreement includes any provisions that would trigger a change in your compensation or benefits in the event of a change of control of the company.
5. Intellectual property rights: Ensure that any intellectual property you create while working for the company is owned by you or that you have appropriate licensing rights.
6. Confidentiality and non-disclosure: Check that any confidential information that you receive as part of your role is properly protected and that you are not restricted from using or disclosing it after you leave the company.
7. Governing law and jurisdiction: Check which laws and jurisdiction will apply to any disputes that may arise under the agreement.
8. Indemnification and insurance: Check that you are indemnified and that the company has sufficient insurance coverage in case of any legal claims that arise from your actions or decisions in your role.
9. Board membership: If you are being appointed to the board of directors, ensure that your rights and responsibilities are clearly defined and that you have access to all necessary information and resources.
10. Performance metrics and evaluations: Check that your performance metrics and evaluation criteria are clearly defined and that you have a fair process for review and feedback.
Overall, it is important to carefully review your executive employment agreement to protect your interests and ensure that you have a clear understanding of your rights and responsibilities. If you have any questions or concerns, it may be helpful to consult with a legal or financial advisor.