Executive Employment Contracts from the Executive’s Perspective

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.