What is executive compensation?
Executive compensation is a rapidly growing field of consulting. Experts in the field design executive compensation aimed at fulfilling the competing interests at play. Well-designed executive compensation plans attract top talent, incentivize short- and long-term performance and protect the financial interests of the company.
Why should I obtain executive compensation advice from an expert?
You, the prospective talent, need to protect your own interests. All too often, companies will design compensation plans that look and sound good on paper only. You must ensure that you are accepting the best offer on terms that make sense for you.
This is becoming more and more difficult without expert advice. In recent years, executive compensation plans have become increasingly sophisticated, complex, and packed with conditional statements, run-on sentences and legalese that can be near impossible to understand without a background in employment law.
What executive compensation advice can an employment lawyer provide?
Executive agreements are, from a legal perspective, contracts of employment. Employment contract review is a regular part of our practice. Employment lawyers are engineers of employment agreements; we design, redesign and deconstruct contracts of employment. In short, our experience and expertise will help you identify the ways in which the employment agreement could go wrong, before it is cast in stone.
What risks do I face if I do not obtain qualified legal advice?
Perhaps the biggest risk is signing a contract that allows the company to terminate your employment without paying you any of the deferred compensation that forms such a significant part of executive compensation.
Why not simply hire a compensation consultant?
Most compensation consultants do not have the expertise to interpret your employment agreement, which requires a detailed understanding of the law. Contrary to what many people believe, this is not a straightforward exercise. Surprisingly often, an employment agreement will not function as it would appear to on its face.
What are some commonly misinterpreted provisions of executive agreements?
Many important provisions of employment contracts are often fundamentally misinterpreted - and not just those relating to compensation. Given the complexity of most executive agreements, the majority will contain multiple commonly misunderstood provisions, for instance:
Entitlement to, and method of calculating a bonus, particularly where there is ambiguity in the agreement.
When an entitlement to a bonus arises.
Vesting, exercise, and other terms of stock option agreements.
Vesting of equity and other terms of share ownership.
Pension and benefit plans.
Contractual entitlements upon termination of employment.
Payment of bonus, vesting of stock options or equity and other entitlements following termination of employment.
Agreements regarding intellectual property, confidentiality, non-competition and non-solicitation.
What can Hyde HR Law do for me?
The lawyers at Hyde HR Law are experts in drafting and reviewing executive contracts and executive compensation agreements. We draft sophisticated employment agreements for our employer clients, which gives us the expertise to provide our employee clients with sound advice on executive contracts and compensation. Contact us today for advice on your executive compensation plan.