Executive Compensation is a specialized area of employment and business law dealing with the pay, bonuses, and perquisites provided to executives and managers. These perks go above and beyond standard compensation packages, and, as a result, come with nuanced legal implications. Companies rely on carefully worded contracts that attempt to strike a balance between providing incentives to executives to perform at their very best, while protecting the company from liability if the executive is terminated or resigns.
Executive Compensation requires a particular level of expertise, not only with respect to employment law, but corporate governance, shares, pensions, and benefits. On their face, these contracts can appear generous, but attention must be paid to the fine print. This is especially the case where an executive receives compensation from multiple sources, such as a share purchase agreement, in addition to an employment contract.
Companies balance the objectives of designing compensation plans that are attractive to candidates while, at the same time, aligning executive and corporate interests. They also need to remain compliant with government regulation and the intricacies of employment law generally.
Prior to entering an employment relationship, and upon any potential termination, Executive Compensation packages require a thorough, line by line, analysis by counsel who are knowledgeable in the various legal risks for both the executive at issue and the employing company. If these careful steps are not taken, the company at issue could face significant costs from ensuing litigation. Additionally, upon termination, the executive is often bound to strict confidentiality and fiduciary requirements.
At Mann Lawyers we are able to engage in sensitive compensation negotiations while avoiding adversarial conflicts. Areas in which we are able to advise include:
– Public disclosure
– Long-term incentive plans
– Cliff vesting
– Restricted Share Units
– Non-competition and non-solicitation clauses
– Golden handcuffs
– ESA termination clauses
– Shareholder Agreements
– Fiduciary Obligations
The team at Mann Lawyers LLP, comprised of corporate, transactional, and litigation lawyers, is well-placed to assist executives at any stage in their career.