Common Types of Job Transitions
All executives and professionals need to prepare in advance for an eventual job transition. A transition could occur in numerous ways, including the following:
- By a change of control, including a merger or acquisition.
- When a Board or leadership asks the executive to separate because they want to go in a different direction.
- When an executive is let go for cause.
By a lay-off. - When an executive seeks to resign or have a structured transition out, and
- As a result of the executive’s disability or death.
The Focus on Initial Compensation
Executives and professionals who are receiving an offer of employment typically pay close attention to the initial compensation package. The compensation package may include a base salary, short-term and long-term incentives, equity, and other benefits. The executive or professional may seek to negotiate this initial compensation.
The Overlooked Exit Strategy
Many executives and professionals, however, when reviewing an offer letter or employment agreement, tend to prioritize the initial compensation and onboarding. They are not considering the eventual exit. While negotiating salary and benefits feels immediate and tangible, the terms governing departure often receive little attention, despite their potential to significantly impact financial security and career mobility.
Hidden Risks in Employment Agreements
Unfortunately, many employment and equity agreements contain non-compete agreements or other restrictive covenants. These restrictive covenants can limit an employee’s ability to find another role. In addition, many employment agreements leave employees vulnerable in two critical scenarios: when the company undergoes a change of control (such as acquisition or merger) and when they are terminated without cause, offering little to no protection in either situation.
Get Legal Support
The skilled attorneys at the Maura Greene Law Group review and negotiate offer letters, employment agreements, and other employment contracts. A strong employment agreement can provide valuable protection for executives and professionals during job transitions. Contact our employment attorneys for a confidential consultation, call 617-936-1580, or email [email protected].
The Not So Fine Print:
Every case has its unique facts. Before you take any action, you should contact an employment lawyer and get advice on your own situation. We can’t provide legal advice here, and this isn’t intended as legal advice. It is best, if possible, to establish a relationship with an attorney before a workplace issue turns into a crisis.