Severance Compensation Package for Director, VP and C-Level Executives

Last Wednesday, on January 4, 2023, the executive career advancement website IvyExec  published an article I wrote on “Severance Compensation Package for Director, VP and C-Level Executives”

This new article is designed not only for CEOs, COOs, CSOs, CTOs and other C-suite and senior executives in technology and life sciences, and also for other senior executives, and in other areas of the economy as well, but even for many VPs, directors and mid-level executives, who at one or more points in your career may face employment termination.  

Termination often comes as result of a change in ownership, control or top management that wants to clean house and bring in their own team, regardless of your success and past contributions.  In that case you might be called in and told “we’ve decided to go in a new direction…” classic code for your job is toast.  Other times a series of changes occur that make it hard for you to continue.

In my new article, I address  the following questions:

1. Why do you need to have a severance package in your executive job offer?
2. When can you later negotiate a severance agreement or package that you could not obtain in your job offer when you joined the company?
3. What is a typical monetary executive severance package for VPs, directors, CEOs, CMOs and other C-level executives?
4. What other non-monetary separation terms should you seek?

My discussion of monetary terms includes not only cash salary and bonus but key equity terms as well, so that a negotiated severance package, regardless of the timing and circumstances, is designed to make you whole for what you are losing with employment termination.

The discussion of non-monetary issues in the severance package includes important issues of Severance Triggers, Restrictive Covenants, Non-disparagement,  and Release of claims.

To see my full IvyExec career advancement website article, go to LINK: https://www.ivyexec.com/career-advice/2023/severance-compensation-package-for-executives/

Or on my website at  https://www.executiveemploymentattorney.com/severance-compensation-package-for-director-vp-and-c-level-executives/

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. 

Triggering Executive Severance to Protect Your Interests in Case of COVID-19 or Other Changed Circumstances

Six days ago, on May 27, 2020, CEOWorld magazine published an article I wrote on “Triggering Executive Severance to Protect Your Interests in Case of COVID-19 or other Changed Circumstances”.  The magazine advised me that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website.

This was my 28th article published in CEOWORLD. Earlier this year, the editor advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  See https://ceoworld.biz/author/robert-adelson/

This article, my most recent, published May 27th, is designed for CEOs, C-level and senior executives, especially those who, once on the job, may find that their chances for success become daunting because changed circumstances beyond their control.  For many such executives, the severe economic downturn arising in connection with the COVID-19/coronavirus crisis may cause great reductions in expected base, bonus, equity and LTI compensation and reduced duties and responsibilities as well.​

However, the article is not limited to COVID-19.  The article also discusses other circumstances where clients of the author have also experienced such negative effects, as result of dashed expectations, including where the executive accepted his or her job offer for a CEO, C-level or other senior executive position in reliance on any of these company actions:

• Keeping a major customer account,
• Retaining the services of a key man or woman executive,
• Keeping or achieving regulatory approval,
• Keeping or retaining a key source of funding,
• Company possessing the positive financial position represented to you, a position on which you can build for growth.

The article then concludes with proactive steps the executive can take in your executive employment and job offer negotiations to protect yourself in the event of such changed circumstances in the future.  This includes the crafting of severance terms with triggers tailored to your situation in the event of dashed expectations. Thus, the executive would have an executive contract that provides that if circumstances change, such that the job is no longer what you bargained for, you can move on to a new opportunity and still be made whole as you do so.

To see my full CEOWorld magazine. article, go to LINK:

https://ceoworld.biz/2020/05/27/triggering-executive-severance-to-protect-your-interests-in-case-of-covid-19-or-other-changed-circumstances/

Or on my website at https://www.executiveemploymentattorney.com/triggering-executive-severance-to-protect-your-interests-in-changed-circumstances/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, CSOs, senior management executives, business leaders, and high net worth individuals worldwide.

https://www.linkedin.com/company/ceomagazine/

The editor has also advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  See https://ceoworld.biz/author/robert-adelson/

It is my hope that this article will be helpful to suggest a potential remedy in job offer negotiations to CEOs, COOs, CMOs, other C-Level and senior executives who are considering a new executive position or giving up other opportunities, and, acting in reliance on the promises made by the employer, and seek protection against potential changed circumstances, whether from a pandemic, loss of a key customer, loss of key personnel, a negative regulatory ruling, loss of financing  or otherwise, so the executive can if that happens move and be made whole. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Executive Equity Compensation in Severance Negotiations

A week ago, on October 30, 2019, CEOWorld magazine published an article I wrote on “Executive Equity Compensation in Severance Negotiations”.  The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.

This was my 25th article published in CEOWORLD. Earlier this year, the editor advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.
​See https://ceoworld.biz/author/robert-adelson/

This article, my most recent, published October 30, is 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

• What to include in your offer letter or executive employment agreement when you join the company?
• What to seek in a change-of-control / retention situation?
• What to negotiate for on employment termination?
• The importance of equity in your severance negotiations.

In discussing equity severance negotiations at the time of employment termination, my article raises using your leverage in employment separation negotiations including

• Legal claims you may have against your company related to wrongful termination of employment,
• Termination transition services and support the company may desire from you,
• Cooperation to sign a lock-up agreement or other documents or actions post-termination.

To see my full CEOWorld magazine. article, go to LINK:
     https://ceoworld.biz/2019/10/30/executive-equity-compensation-in-severance-negotiations/

Or on my website at
     https://www.executiveemploymentattorney.com/executive-equity-compensation-in-severance-negotiations/

With more than 12.4+ million-page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

     https://www.linkedin.com/company/ceomagazine/

The editor has also advised that I can add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.

     See https://ceoworld.biz/author/robert-adelson/

It is my hope that this article will be helpful to CEOs, COOs, CMOs, other C-Level and senior executives to provide for appropriate terms to protect their equity rights in any present or future severance negotiations.  If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.

Essential Employment Contract Terms for Medical Device and Biotechnology Executives

On December 29, 2018, CEOWorld magazine published an article I wrote on “Essential Employment Contract Terms for Medical Device and Biotechnology Executives”    The magazine advised me that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website. 

This article was designed for CEOs and other C-Suite, VPs or other senior executives in Medical Device, Biotechnology and other life science companies who, when negotiating a new job offer or employment contract or terms of executive compensation, need to give attention to essential employment terms in these fast growing and changing industries.

My article indicates how in these negotiations, the executive should seek key executive employment terms in the following important areas:

• Signing bonus to at least make you whole for anything you are giving up,
• Performance targets geared to your type and stage of life science company and its exit goals,
• Equity in scope and form matched to your position, stage of company and potential tax issues
• Relocation and other expenses (e.g. maintaining your M.D. license) again to keep you whole when you change companies.

The article also discusses executive severance terms and triggers for your protection in case changes necessitate you to change companies in the future.

To see my full CEOWorld magazine. article, go to LINK:  https://ceoworld.biz/2018/12/29/essential-employment-contract-terms-for-medical-device-and-biotechnology-executives/

Or on my website

https://www.executiveemploymentattorney.com/essential-employment-contract-terms-for-medical-device-and-biotechnology-executives/

With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

It is my hope that this article will be helpful to CEOs and other senior executives in the medical device, biotechnology or other life science industries who are negotiating new executive job offers, employment contracts or executive compensation packages and should pay attention to the essential contract terms discussed in my article. If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.


About Robert A. Adelson, Esq.
Robert A. Adelson, Esq. is a corporate and tax attorney and partner at Engel & Schultz LLP, Boston, Massachusetts. He represents C-Level executives and key employees in negotiations over executive employment terms, equity, compensation, relocation, retention and separation agreements, severance packages, and where necessary suits over wrongful termination. 

Using an Executive Severance Agreement to Protect Your Employment, Career and Reputation

On September 25, 2018, CEOWorld magazine published an article I wrote on “An Executive Severance Agreement Protects Your Employment, Career and Reputation” The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.

This article was designed for CEOs and other C-Suite, VPs or other senior executives who, when negotiating a new executive job offer or employment contract, need to give attention to severance terms even where the employment is stated to be “at will.”  Also,  even if severance is not included at the outset, it can be negotiated later, even at the time of employment termination.

My article further indicates how severance agreements address continuation of salary and also address other issues that might be very important to the executive including

• Continuation of health and other key benefits,
• Payment of earned bonus and prorated bonus,
• Vesting and other rights in stock, options, RSUs or phantom stock of the company,
• Protections for the executive’s reputation.

The article also addresses items the employer may seek including non-competes, releases and waivers and negotiation strategies for executives on such items.

To see my full CEOWorld magazine. article, go to LINK:  http://ceoworld.biz/2018/09/25/an-executive-severance-agreement-protects-your-employment-career-and-reputation/
Or https://www.executiveemploymentattorney.com/articles-section/executive-severance-package/

With more than 12.4+ million page views, CEOWORLD magazine is the world’s leading business magazine written strictly for CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide.

​It is my hope that this article will be helpful to CEOs and other senior executives who are seeking to negotiate severance terms into their job offers, employment contracts or separation agreements, or need help on particular terms of the severance package. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com or call 617-875-8665.

​

Severance Agreements Protect Sought-After Executives

This is an article of mine published  March 27, 2013 on my website at https://www.executiveemploymentattorney.com/articles-section/executive-severance-package/  along with other articles of mine at https://www.executiveemploymentattorney.com/articles-section/

The article indicates how a severance agreement protects executives employed on an at-will or other basis in the event of termination without good cause, and that it is wise to provide for severance terms in an employment agreement or offer sheet at the outset of employment. However, a severance agreement can be made at any time throughout the employment of the executive.

The article further indicates how severance agreements address continuation of salary and  also address other issues that might be very important to the executive including

• Continuation of health and other key benefits,
• Payment of bonus, or prorated bonus
• Vesting and other rights in stock, options or phantom stock of the company
• Protections for the executive’s reputation

Finally, the article also address items the employer may seek including non-competes, releases and waivers and negotiation strategies for executives on such items.

• Are you are an employee or executive reviewing a job offer or employment agreement with or without severance terms and need advice on terms or its enforceability?
• Have you been terminated or face termination and have similar concerns?
• Have you received a severance agreement and need advice on its terms or what to seek in negotiations?

In any of those cases, if  you have questions or need assistance, please email me at radelson@engelschultz.com or call 617-875-8665.

About Executive Employment Attorney Robert Adelson, Esq.

Robert A. Adelson, Esq. has been a corporate, tax and employment attorney since 1977. He graduated Northwestern Law School in Chicago, Law Review, and holds an LL.M. degree in Taxation from NYU. He began as an associate at nationally prominent New York City mega law firms, Dewey Ballantine and Weil Gotshal & Manges. For over 20 years, Adelson has been a partner in small and medium sized Boston law firms, representing CEOs and senior executives on employment, executive compensation, equity and separation matters.