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/

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A Change of Control Agreement Saves the Day When Your Company Is in Play

Late last year on Thursday December 16, 2021, the website Ivy Exec published under executive “Advancing” an article I wrote on “A Change of Control Agreement Saves the Day When Your Company Is in Play”. 

This new article is designed not only for C-level and senior executives, but even for many directors and mid-level executives, whose companies are now “in play” – that there may be a sale of the company with new owners and to some extent a whole new successor employer.

My article first discusses this situation faced by the executives, then advocates self-assessment of your role and importance in the pre-deal and post deal environment, and finally the importance of establishing your role and rights in a retention / change of control agreement.  Among the key elements of that agreement are the following:

  • Significant equity of the target company to the executive 
  • Liquidity for the executive on the levels of liquidity offered owners
  • Properly structured equity, tax favored for capital gain taxation
  • Proper severance in the event of early termination after the acquisition
  • Ability to trigger severance if the executive’s position or responsibilities are reduced
  • Proper structuring to avoid potential excise tax for parachute payments under IRC §280G.

To see my full IvyExec Career Advice website article, go to LINK  https://www.ivyexec.com/career-advice/2021/a-change-of-control-agreement-saves-the-day-when-your-company-is-in-play/  

 Or on my website at https://www.executiveemploymentattorney.com/a-change-of-control-agreement-saves-the-day-when-your-company-is-in-play/

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/

It is my hope that this article will be of benefit to VPs, directors and senior executives who have are trying to navigate a change in control in their companies.  My article suggests terms and approaches to each of you and thus I hope will provide you a benefit in your negotiations.

Feel free to tweet or share this article. If you or any colleague of yours needs assistance in negotiating a change of control situation, please do reach out to me.

Adelson & Associates, LLC: New law firm and address, but Continuity in my Growing Law Practice for 2020 and Beyond

We begin this new year 2020 with a new law firm and a new downtown Boston address, but, at the same time, with full continuity for my growing law practice, which saw its best year in 2019.

logo of Adelson & Associates, LLC

Here is more information on the new firm:

Continue reading “Adelson & Associates, LLC: New law firm and address, but Continuity in my Growing Law Practice for 2020 and Beyond”

Executive Equity Compensation in Severance Negotiations

On October 30, 2019, CEOWorld magazine published an article I wrote on “Executive Equity Compensation in Severance Negotiations”. 

This article was designed for CEOs, C-level and senior executives, for whom equity can often be the most valuable part of their executive compensation package.  The article addresses the question – what happens to that equity position if you face employment termination – and offers tips for severance negotiations over equity, including

Continue reading “Executive Equity Compensation in Severance Negotiations”

Negotiating Executive Retention Agreement Terms to Protect Your Interests

On April 26, 2019, CEOWorld magazine published an article I wrote on “Negotiating Executive Retention Agreement Terms to Protect Your Interests” The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website. 

CEOworld Magazine logo

This article is designed for 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 your current company might provide a significant retention package for you to stay. Continue reading “Negotiating Executive Retention Agreement Terms to Protect Your Interests”