Executives in Massachusetts should strongly consider getting a legal review of their executive contract before signing it or taking any significant action that might violate the terms of the agreement.
The employment lawyers at the Katz Law Group have four decades of experience handling these extremely sensitive legal matters.
The Importance of a Legal Review Before Signing
The executive contract that you will sign before taking over a company spell out all of your responsibilities and benefits. The minute details of these terms and requirements can make a huge difference over the course of your time with the corporation. If you are new to the role or are entering a new industry, getting experienced legal help to review the executive contract before signing it can maximize the benefits of the contract and minimize, or at least make known, the risks and downsides of the deal.
Just a few of the most important parts of the agreement to fully understand before signing it include:
- Executive compensation, which can be surprisingly complex
- Severance benefits
- The scope of your authority as an executive
- Termination rights and duties
- Post-termination responsibilities, like maintaining a non-disclosure agreement or a non-compete agreement
- Your duties and expectations as an executive with the company
As employment lawyer David S. Katz often points out, “Many of these terms in the executive contract can be negotiated to secure the best deal for both the individual executive and the corporation.”
Review an Executive Contract Before Making a Big Move
Company executives considering a drastic move may also want to get a close and detailed legal review of their executive contract before acting on it.
Just a few examples of situations that may call for a legal review of the contract before acting are:
- Doing something that may be interpreted as an abuse of the executive's power
- Making a transaction or other decision that could be seen as a conflict of interest
- Ignoring or disagreeing with consultants or internal reports
- Altering the structure of the corporation
- Reacting to an internal whistleblower
- Resigning from the executive position or stepping away from it temporarily, like in a medical leave of absence
In these and other problematic and sensitive situations, executives need to take precautions and make sure they do not make things worse by violating the terms of the agreement. A thorough legal review can ensure that they continue with the company and avoid the often harsh repercussions of breaching the contract.
The Massachusetts Employment Lawyers at the Katz Law Group
Executives are among the most important workers at a corporation, and their executive contracts reflect the power and the potential danger that they pose to the company. The business and contract lawyers at the Katz Law Group have helped both sides of this sensitive negotiation succeed in getting what they want without unduly hampering the interests of the other side.
Contact us online or call our central Massachusetts law office at (508) 480-8202.
