From the executive’s perspective, some key terms of an executive employment agreement include:
(1) A guaranteed minimum term of employment;
(2) A guaranteed minimum base salary and criteria for increases;
(3) Other compensation, such as specified bonus and incentive compensation that is not discretionary;
(4) Benefits and expense reimbursement;
(5) Mandatory severance for a predetermined amount;
(6) Termination for cause only (vs. “at will” employment);
(7) D&O insurance and indemnification;
(8) A change in control provision;
(9) Resignation for good cause without jeopardizing severance; and
(10) Options for renewal of the employment agreement.