Joining a board of directors as an executive can be rewarding, yet has its pitfalls. Boston Executive employment attorney Robert Adelson serves the role of an employment advisor to help executives weigh the costs and benefits of joining a board, as well as negotiates their compensation package. The many benefits of joining a board include but are not limited to lucrative stock and options, networking opportunities and access to a new source of information. However, despite these rewarding benefits, an executive who joins a board takes on a large task – one which, if left unfulfilled can expose them to shareholder lawsuits.
Continue reading “Joining a board of directors as an executive can be rewarding”
Employment agreements and equity arrangements are the “golden keys” that unlock “golden handcuffs”. Signing bonuses serve as the key to open the door to hiring. Vesting options, bonuses and other “golden handcuff” benefits make executives more reluctant to leave their current position for a new one. However, signing bonuses are often used as a tool of persuasion – urging an executive to sign with a new company. Signing bonuses are crucial when accompanying a job offer that has a lower salary than an executive wants.
Continue reading “Employment agreements and equity arrangements are the “golden keys” that unlock”
Negotiating pay raises and better employment terms is a touchy topic in the business world. At times, its often hard to know when it is and is not appropriate to renegotiate you’re employment contract. Aaron Sacker* a VP sales accepted a position that offered less in terms then he originally wanted, however out of pure necessity Aaron Sacker took the job and relocated himself and his family across the country. Two years later, after victory was achieved and Aaron Sacker had mastered his new position, improving the company along the way, Attorney Robert Adelson helped him re-open negotiations that were originally denied in the initial employment contract. Due to Aaron Sacker’s success with his current company, more promising opportunities were presented to him. However, because of Aaron Sacker’s devotion to his current company and role as a key player Attorney Adelson and him decided to re-negotiate his employment terms with his current company before choosing to accept another offer. Aaron Sacker knew the value he brought to the company and with the help of Robert Adelson, voiced this to his employers who agreed, and did not want to risk losing Aaron Sacker. Re-negotiation, in those circumstances, offered the best course or both sides.
Continue reading “Negotiating pay raises and better employment terms is a touchy topic in the business world”
Negotiating succession plans protects the first-time founder’s interests and gives opportunity for a professional CEO to lead the next phase of growth for the company. Founder CEO succession often calls on venture capital investors that have the proven ability to sustain infrastructure and organizational growth. VCs effectively communicate, interface, and energize investors, directors and the media. Negotiating CEO succession allows investors to use their experience in scaling ventures to liquidity, before investing millions of dollars to fuel the next stage of growth. First-time founders that seek capital need to recognize that founder CEO succession is likely, and sometimes inevitable; because of this, it is imperative to negotiate succession plans. First-time founders should build a strong board that includes independent, tech-savvy directors. Investors should not overload the board, rather it is best to have an independent majority of industry representatives who can empathize with the founder CEO and a minority of VC members who can offer input but not control the direction of the firm. In taking investment, and negotiating CEO succession plans it is prudent to choose character over cash, time should be spent evaluating past investments, experience and judgment. It is also important to ask questions: what input would the founder have? What would be the composition of the board? Founders should be looking for mutual respect amongst their investors and other members of the board.
Continue reading “Negotiating succession plans protects the first-time founder’s interests”
Restricted stock can be offered in lieu of cash to deliver immediate value with a strike price much less than current fair market value. For senior recruits, technical or executive, you want to offer more to beat the competition – restricted stock does this. Robert Adelson, a Boston employment attorney, negotiates executive compensation; in April 2012 he worked with executive Steve Miles to set up a vesting schedule to later grant him compensation in the form of stock.
Continue reading “Restricted stock can be offered in lieu of cash to deliver immediate value with a strike price”