Severance Compensation Package for Director, VP and C-Level Executives

Last Wednesday, on January 4, 2023, the executive career advancement website IvyExec  published an article I wrote on “Severance Compensation Package for Director, VP and C-Level Executives”

This new article is designed not only for CEOs, COOsCSOs, CTOs and other C-suite and senior executives in technology and life sciences, and also for other senior executives, and in other areas of the economy as well, but even for many VPs, directors and mid-level executives, who at one or more points in your career may face employment termination.  

Termination often comes as result of a change in ownership, control or top management that wants to clean house and bring in their own team, regardless of your success and past contributions.  In that case you might be called in and told “we’ve decided to go in a new direction…” classic code for your job is toast.  Other times a series of changes occur that make it hard for you to continue.

In my new article, I address  the following questions:

  1. Why do you need to have a severance package in your executive job offer?
  2. When can you later negotiate a severance agreement or package that you could not obtain in your job offer when you joined the company?
  3. What is a typical monetary executive severance package for VPs, directors, CEOs, CMOs and other C-level executives?
  4. What other non-monetary separation terms should you seek?

My discussion of monetary terms includes not only cash salary and bonus but key equity terms as well, so that a negotiated severance package, regardless of the timing and circumstances, is designed to make you whole for what you are losing with employment termination.

The discussion of non-monetary issues in the severance package includes important issues of Severance Triggers, Restrictive Covenants, Non-disparagement,  and Release of claims.

To see my full IvyExec career advancement website article, go to LINK: https://www.ivyexec.com/career-advice/2023/severance-compensation-package-for-executives/

Or on my website at  https://www.executiveemploymentattorney.com/severance-compensation-package-for-director-vp-and-c-level-executives/

IvyExec hosts articles and webinars from experts in the career, leadership, and business spaces who wish to share their knowledge with our audience.  In April 2021, I was invited to write for IvyExec since it seeks original content on the topics of career development, leadership, and business strategy as it applies to senior-level and C-Suite professionals.  IvyExec blog posts and webinars are shared with its community of more than 2 million members on its website, in its newsletter, and on its social media channels.  https://www.ivyexec.com/career-advice/write-for-us/

IvyExec claims a “Community of 2.5M+ Leaders”. See also  – https://www.ivyexec.com/

It is my hope that this article will be helpful to CEOs, CMOs, CSOs, CTOs and other C-suite and senior executives in technology and life sciences, who are being recruited and have now, or anticipate soon receiving, an attractive offer to move on, yet are also critical to their current company, where the current company might provide a significant retention package for the executive to stay.   If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

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Raymond James CEO Gets $15M Retention Award

Two weeks ago, on December 21, 2022, I was quoted on the utility of retention bonuses for corporate CEOs where the company has key needs to meet over a defined term, and the special benefits of an equity-based bonus, tied with reasonable terms including clawback provisions, which clearly set the ground rules and give assurance the company will receive a return for its retention bonus offer.

The publication which published this article, which quoted me, is Ignites, the preeminent source for news about the mutual fund industry. Each day Ignites delivers must-read competitive intelligence to more than 89,000 leaders across the world of mutual funds. Ignites is a subsidiary of the Financial Times. https://www.ignites.com/about

During our interview, the Ignites business reporter and article author Sonya Swink, asked me if the retention bonus she was reporting on was reasonable, where Raymond James has awarded Chief Executive Paul Reilly a $15 million equity bonus to incentivize him to stick around for three years while the firm’s board searches for his successor.

In a typical attorney response, I replied, “It depends.”  I told Ms. Swink that the stability Paul Reilly brings to Raymond James, as its long-term CEO, during that period, plus the assurance that there would be adequate time for careful selection and vetting of his successor, where Reilly’s past role as former CEO of Korn Ferry, could well be worth hundreds of millions of dollars to a company like Raymond James with most recent annual sales of $11 billion, annual profits over $1 billion, and current market cap of $21 billion.  At the same time, I did not give an unqualified “yes” to Swink’s question.  This is where the qualifiers came in.  I introduced into our conversation the importance of claw backs, terms and conditions to the bonus pay out, to give reasonable assurance to Raymond James that Reilly would follow through and provide best efforts over the period.  

To see this full Ignites article on Raymond James’ use of an equity bonus
for the Paul Reilly CEO executive retention, go to LINK:

https://www.ignites.com/c/3870914/501564/

or
https://www.ignites.com/lead/c/3870914/501564?referrer_module=t.co
However, please note that access may be limited to Ignites subscribers.
If you wish to view the article contents and are blocked, you may reach
out to me at rob@attorneyadelson.com.

The business reporter who authored this article, Sonya Swink, said she had found me and reached out to me after reading an earlier article I wrote on executive retention bonuses that was published in the IvyExec career advancement website.  That article, published August 4, 2022, was entitled Executive Sign on Bonus, Retention Bonus and Other Bonuses – Terms and Negotiations.” 

My August 2022 article was designed for CEOs and other C-Suite, VPs or other senior executives who when negotiating a new job offer or employment agreement need to give equal and perhaps greater focus on the structure and terms of bonus as they do to base salary compensation.

My article discusses five (5) key bonus structures for Sign-on bonus and Performance bonus but it also discusses the retention bonus, such as the one provided to Paul Reilly,  the Raymond James CEO.  The retention bonus or stay bonus is normally a one-time payment or a one-time retention agreement for considerations for the executive to commit to staying with the company for a set period of time or through to a planned event.  Often that planned event is an acquisition or change of control.  With Paul Reilly, the Raymond James CEO, the reported reason for the retention bonus is recruitment and integration of his CEO successor and a smooth transition along the way.

To see my full IvyExec career advancement website article, go to LINK:  https://www.ivyexec.com/career-advice/2022/executive-sign-on-bonus-retention-bonus-and-other-bonuses-terms-and-negotiations/ 

Or on my website at  https://www.executiveemploymentattorney.com/executive-sign-on-bonus-retention-bonus-and-other-bonuses-terms-and-negotiations/

It is my hope that this article will be helpful to CEOs and other senior executives who are considering retention bonuses, whether you wish to seek one, have been offered one, or are unsure of the terms, conditions or claw backs involved.  If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Also, further information and strategies on CEO and senior executive
retention agreements, including strategies for you to propose and obtain
retention bonuses, are provided in my earlier article published by
CEOWORLD magazine, May 2019, “Negotiating Executive Retention
Agreement Terms To Protect Your Interests.”   To view my May 2019 article,
go to https://www.executiveemploymentattorney.com/executive-
retention-agreement/

How to Manage Multiple C-Level Executive Job Offers

Ten days ago, on Friday November 4, 2022, CEOWorld magazine published an article I wrote on “How to Manage Multiple C-Level Executive Job Offers”

This new article is designed for CEOs,  CFOs, COOs, and other C-level and senior executives, who currently have or expect to soon have multiple job offers, each job offer presenting an attractive opportunity, and where you as C-level executive, seek guidance of how to manage these offers for best effect financially, and for your families and your career.

This article discusses the art of managing multiple executive job offers to get the best results for yourself, including

  • How to evaluate multiple job offers, 
  • How to manage the process and in doing so manage expectations of the parties, 
  • What executive contract terms to seek from each company,
  • How to negotiate for the best terms from those available and still position yourself well for future opportunities,
  • How to navigate this process while maintaining your current position. 

Finally, the article discusses planning your exit to do so on good terms that enhance your reputation.

To see my full CEOWORLD magazine. article, go to LINK: https://ceoworld.biz/2022/11/04/how-to-manage-multiple-c-level-executive-job-offers/

Or on my website at https://www.executiveemploymentattorney.com/how-to-manage-multiple-c-level-executive-job-offers/

This was my 39th article published in CEOWORLD since 2016.  Previously, the editor advised that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  

On its own initiative, CEOWORLD magazine created on their website a library of Robert Adelson published articles.   You can peruse this library and/or read as many of my 39 published articles as you wish.  See https://ceoworld.biz/author/robert-adelson/

CEOworld Magazine logo

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide. https://www.linkedin.com/company/ceomagazine/

Tweeting My new CEOWorld article on “How to Manage Multiple C-Level Executive Job Offers”

If you tweet and would like to tweet my article, here is my four (4) tweets to retweet or to use in your own tweet –

11/4/22 article @ceoworld by @attorneyadelson for #CEOs #CLevel #seniorexecutives on “#Managing #Multiple #CLevelExecutive #JobOffers” including #comparative #evaluation of #companyculture #totalcompensationpackage #worklifebalance

https://ceoworld.biz/2022/11/04/how-to-manage-multiple-c-level-executive-job-offers/ via @CEOWORLD magazine

11/4/22 article @ceoworld by @attorneyadelson for #CLevel #seniorexecutives on “#Managing #Multiple #JobOffers” to #resist #recruiter #lowballoffers, #match #yourneeds to #suitorgoals, bring #bothoffers to #credibility then #runoff https://ceoworld.biz/2022/11/04/how-to-manage-multiple-c-level-executive-job-offers/ via @CEOWORLD magazine

11/4/22 article @ceoworld by @attorneyadelson for #CLevel #seniorexecutives on “#Managing #Multiple #CLevelExecutive #JobOffers” for #meaningfulequitystake #taxfavoredequity #neededsigningbonus #severancetriggers #robustprotections https://ceoworld.biz/2022/11/04/how-to-manage-multiple-c-level-executive-job-offers/ via @CEOWORLD magazine

11/4/22 article @ceoworld by @attorneyadelson for #CEOs #CLevel #seniorexecutives on “#Managing #Multiple #CLevelExecutive #JobOffers” to #getbestterms from #twojoboffers with #fulltimepostion for one #remoteconsulting for other https://ceoworld.biz/2022/11/04/how-to-manage-multiple-c-level-executive-job-offers/ via @CEOWORLD magazine

It is my hope that this article will be of benefit to CEOs, C-level and senior executives to offer them insights and guidance to make the most of the opportunity when you are being courted and …more than one suitor company is vying for your services for you to accept their job offer for next executive position.

 Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me @ 617-875-8665 or rob@attorneyadelson.com .

Executive Retention Packages – Terms and Negotiations

Last Friday, on October 7, 2022, the executive career advancement website IvyExec published an article I wrote on “Executive Retention Packages – Terms and Negotiations.”

This new article is designed for CEOs, CMOs, CSOs, CTOs and other C-suite and senior executives in technology and life sciences, and in other areas of the economy.  This article  might also be of benefit to many directors and mid-level executives.  In each case, this article is directed to executives being recruited and who have now or anticipate soon receiving, an attractive offer to move on, yet who, at the same time, are also critical to their current company.  It is in that circumstance this article suggests how your current company might provide a significant retention package for you to stay or to at least work with them to delay the full impact of your complete departure.

This frequently occurs when the company is “in play”. However, besides this change of control situation, my article discusses a number of other circumstances where executive retention negotiations occur, including where:

  • The company is nearing a critical milestone, necessary for a funding round,
  • The company is planning its IPO and needs an executive lockup,
  • The executive has close relationships with key accounts and the company fears a significant loss of business,
  • The executive has close relationships with key management and performers in the company and fears a significant attrition,
  • The executive as an inventor, innovator and technologist has a critical role in product creation, maintenance or development, or
  • The executive has achieved a level of notoriety such that his or her loss could have a negative impact on perception of the company within the customer or business community where the company operates.

My article also discusses how to raise the issue of executive retention, how to negotiate and frame the executive retention package as a mutually beneficial “win-win” for the executive and the company, and finally the key terms to seek in your executive retention agreement.

To see my full IvyExec career advancement website article, go to LINK: https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

Or on my website at https://www.executiveemploymentattorney.com/executive-retention-packages-terms-and-negotiations/

IvyExec hosts articles and webinars from experts in the career, leadership, and business spaces who wish to share their knowledge with our audience. In April 2021, I was invited to write for IvyExec since it seeks original content on the topics of career development, leadership, and business strategy as it applies to senior-level and C-Suite professionals. IvyExec blog posts and webinars are shared with its community of more than 2 million members on its website, in its newsletter, and on its social media channels. https://www.ivyexec.com/career-advice/write-for-us/

IvyExec claims a “Community of 2.5M+ Leaders”.

See also – https://www.ivyexec.com/

It is my hope that this article will be helpful to CEOs, CMOs, CSOs, CTOs and other C-suite and senior executives in technology and life sciences, who are being recruited and have now, or anticipate soon receiving, an attractive offer to move on, yet are also critical to their current company, where the current company might provide a significant retention package for the executive to stay. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Tweeting My new IvyExec article on “Executive Retention Packages – Terms and Negotiations”

If you tweet and would like to tweet my article, here is my four (4) tweets to retweet or to use in your own tweet –

10/7/22 article @IvyExec by @attorneyadelson for #Clevel and #seniorexecutives #directors – #Negotiating #Executive #Retention #Agreement #Terms to Protect Your Interests if u have #joboffer & company #dependence on you for #tech #innovation or #maintenance https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

10/7/22 article @IvyExec by @attorneyadelson for #Clevel & #seniorexecutives #directors on #Negotiating #Executive #Retention #Agreement #Terms to Protect Ur Interests if u have #joboffer &company #dependence on u 2 #avoid #employee #attrition https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

10/7/22 article @IvyExec by @attorneyadelson for #Clevel and #seniorexecutives #directors – #Negotiating #Executive #Retention #Agreement #Terms to Protect Your Interests if u have #joboffer &company #dependence on you to #retain #clients https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

10/7/22 article @IvyExec by @attorneyadelson for #Clevel and #seniorexecutives #directors on #Negotiating #Executive #Retention #Agreement #Terms to Protect Your Interests if your company is #inplay &you face #M&A #changeofcontrol https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

Stock Rights That Protect the Value of Your Executive Equity Compensation

Twelve days ago, on Thursday September 1, 2022, 2022, CEOWorld magazine published an article I wrote on “Stock Rights That Protect the Value of Your Executive Equity Compensation.”

This new article is designed for CEOs, C-level and senior executives, who have recently received a job offer or expect to receive a job offer and will be negotiating terms of executive compensation which will include executive equity. 

In those negotiations, executive equity is often a very significant and often a major part of the executive compensation and a often a driver to accept a job offer.  This is so because executive equity offers the prospect of greater financial upside value than from your fairly fixed and limited cash compensation.  This special upside potential for executive equity arises from three different factors: (a)  Appreciation – with your service the stock price or value might rise significantly, (b) Liquidity Event – a potential acquisition or an IPO  might also significantly increase value, (c) Favorable Taxation – with appropriate structuring, appreciated equity on cash out may be taxed at a much lower rate than cash compensation for much greater take home pay. 

Thus, given the high importance of equity in the CEO’s or C-level executive’s compensation package the focus of my article then moves to discuss these five (5) critical areas of stock rights and terms you want to be sure to give proper attention in your negotiations to give you the best chance to achieve the potential value from the equity you are granted: 

  • Meaningful Level of Equity – to be sure that sufficient equity is granted so that if success is achieved, it will be impactful for you,
  • Tax Favorable Structure – negotiation over the form of your equity at the outset is quite important because in tax law – “form is substance” – different forms produce very different tax results and you want tax-favored equity if possible,
  • Severance Protection – if midway through the buildup you are forced out, you want your severance buy-out to embrace your equity as well as less important cash components of your comp package,
  • True Up Adjustment – especially if you are brought in to secure a financing raise, you don’t want to be a victim of your own success and seeking a level anti-dilution protection is a fair ask,
  • Cash-out protections – if after a number of years, no liquidity event is on the horizon, it is helpful to have a put option with the company to assure at some point you can tap into the value you achieved.

To see my full CEOWORLD magazine. article, go to LINK: https://ceoworld.biz/2022/09/01/stock-rights-that-protect-the-value-of-your-executive-equity-compensation/

Or on my website at https://www.executiveemploymentattorney.com/stock-rights-that-protect-the-value-of-your-executive-equity-compensation/

This was my 38th article published in CEOWORLD since 2016.  Previously, the editor advised that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  

On its own initiative, CEOWORLD magazine created on their website a library of Robert Adelson published articles.   You can peruse this library and/or read as many of my 38 published articles as you wish.  See https://ceoworld.biz/author/robert-adelson/

CEOworld Magazine logo

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide. https://www.linkedin.com/company/ceomagazine/

Tweeting My New CEOWorld Article on “Stock Rights That Protect the Value of Your Executive Equity Compensation”

If you tweet and would like to tweet my article, here is my five (5) tweets to retweet or to use in your own tweet –

9/1/22 article @ceoworld by @attorneyadelson for #CEOs #CLevel #seniorexecutives on “#StockRights to #ProtectValue of Your #Executive #EquityCompensation “ including #acceleratingequity if u r #forcedout midway thru #companybuildup https://ceoworld.biz/2022/09/01/stock-rights-that-protect-the-value-of-your-executive-equity-compensation/ via @CEOWORLD magazine

9/1/22 article @ceoworld by @attorneyadelson for #CEOs #CLevel #seniorexecutives on “#StockRights to #ProtectValue of Your #Executive #EquityCompensation“ including #TrueUpAdjustment to keep ur #equitypercent if u lead #capitalraise  https://ceoworld.biz/2022/09/01/stock-rights-that-protect-the-value-of-your-executive-equity-compensation/ via @CEOWORLD magazine

9/1/22 article @ceoworld by @attorneyadelson for #CEOs #CLevel #seniorexecutives on “#StockRights to #ProtectValue of ur #Executive #EquityCompensation“ including #putoption to #cashout #executiveequity if no later #liquidityevent https://ceoworld.biz/2022/09/01/stock-rights-that-protect-the-value-of-your-executive-equity-compensation/ via @CEOWORLD magazine

It is my hope that this article will be of benefit to CEOs, C-level and senior executives to assure you give proper attention to the five key stock rights mentioned as you plan or negotiate your equity package often the most variable and potentially most important component of your executive compensation. Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me @ 617-875-8665 or rob@attorneyadelson.com .