Executive employment agreements

Executive employment agreements are a necessity of any relationship between a company and its management. This article will provide a review of what these agreements are and why they are so important. Whether your negotiation of an executive employment agreement is smooth or difficult, you should always keep your eyes firmly locked on a few key provisions. The information below should allow you to foster strong relationships with the executives at your financial institution and largely avoid causing unnecessary harm to your future business.

The Basics: What Is an Executive Employment Agreement?
At its core, an executive employment agreement is a formal and binding contract between a company and an employee with significant management experience. The terms contained within the agreement establish not only the obligations to which both the company and the employee hold one another, but also their expectations. The nuts and bolts of the employee’s relationship with the company are defined, including—but not limited to—his or her compensation, duties during the term of employment, subjection to restrictive covenants (such as non-compete clauses) and conditions/behaviors leading to termination.

 

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