Executive compensation agreements are often negotiated at a higher level than typical employment contracts. This is because executive-level employees often command more negotiating power than typical employees.

Executive compensation agreements vary significantly.  They include elements that are industry-specific and often vary based on the size of the company involved and whether the position is for-profit or non-profit. Frequently included provisions include the following:

  • Position of employment

  • Term of employment

  • Compensation and benefits

  • Duties and performance

  • Termination of employment and definitions of cause, disability and incapacity for purposes of termination decisions

  • Confidentiality

  • Tax issues

  • Indemnification and D&O insurance

  • Non-competition terms

  • Expenses and reimbursement

  • Benefits

  • General provisions and choice of laws clauses

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