On January 20, 2015, I gave an invite only presentation for the Vistage community at the conference Center at Waltham Woods, Massachusetts. My topics were -
To view the outline of the “6 Key Points Every CEO should have in his or her Employment Offer”: https://www.slideshare.net/RobertAdelson/6-critical-items-every-ceo-needs-in-his-or-her-employment-offer
If you are a CEO or C-suite executive and would like more information on this presentation or need advice with your own job offer or employment contract, please do contact me at email@example.com
One week ago, on February 28, 2017, CEOWorld magazine published an article I wrote on “The Advantage of RSUs in Your CEO Compensation Package.”
For CEOs, C-Suite executives and other senior level executives, equity compensation is a key part and often the most important part of their compensation package. For many senior executives, equity means stock options or restricted stock. But in many circumstances the better choice is RSUs, restricted stock units.
RSUs are most useful in mature companies where the CEO or C-suite executive takes a position where stock has considerable value, but growth is still expected in the public company or perhaps an IPO or liquidity event is not far off. In that circumstance, the key advantages of RSUs is that taxation would be put off until vesting has occurred and the company would typically pay for or assist in payment of the taxation that would arise, and is willing to do so because vesting has already occurred.RSUs are even more valuable to the CEO or senior executive when he or she takes over in a turnaround situation in a mature company where there is no assurance of appreciation and the CEO needs assurance of a floor in his or her equity value. RSUs also offer a clear advantage over stock options to CEOs and C-Suite executives because RSUs after vesting always retain some value. RSUs effectively have a floor on value. They can never go underwater and become worthless as often happens with stock options.
My article discusses these subjects –
To see my full article, go to http://www.executiveemploymentattorney.com/articles-section/the-advantage-of-rsus-in-your-ceo-compensation-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.
The terms of the RSUs may be set out in the employment agreement or a separate grant agreement. Either way, the CEO or C-suite executive needs to be aware of a number of important terms to be reviewed and negotiated in RSU agreements. With RSUs, as with restricted stock and options, bonus, severance and other key areas of the executive’s employment agreement, it is important to retain trained tax and executive employment counsel.
If you or one of your colleagues is a CEO or senior executive negotiating a compensation package and has questions on RSUs or terms to include in that package, I am glad to assist. please do reach out to me at 617-875-8665 or email firstname.lastname@example.org.
47 of the 50 states in the USA have some level of enforcement for non-compete agreements. Non-compete agreements are those agreements that give companies the right to sue a former employee who starts a new company or joins a competing business.
Massachusetts remains with that majority group that enforces non-competes against former employees. While California is one of the few states that mostly bars their enforcement against former employees.
However, in the last month, Massachusetts came as close as it ever has come to a significant legislative restriction, scaling back enforcement of non-compete agreements in the Commonwealth.
First on June 29, the Massachusetts House of Representatives, and then on July 14, the Massachusetts Senate passed separate bill restricting enforcement of non-compete agreements. However, working right into the evening of the last day of the legislative session, July 31, 2016, the House and Senate were unable to reconcile the two bills. So, the legislation has died for this term.
The House bill would have allowed non-compete agreements of up to one year (2 years in the case of misconduct), but also required employers to pay “garden leave” of 50% highest salary for non-compete period. The more pro-employee Senate bill would have restricted non-competes to three (3) months (2 years in case of misconduct) and provided garden leave during the non-compete period equal to 100% of highest level of salary. Both bills prohibited noncompetes for certain workers, including non-exempt employees. The House bill prohibited enforcement against employees terminated without cause or laid off. The Senate bill prohibited enforcement against independent contractors and essentially eliminated noncompetes for anyone who earns under roughly $130,000. Both bills required that any noncompete agreement be provided to a new employee at the time of a formal offer of employment or within ten business days before the employee’s start date, whichever is earlier, and if required during the employment term to b supported by consideration paid..
Governor Baker had indicated in late July that he would sign the House bill or one similar to the House bill if it reached his desk after approval of both chambers of the Massachusetts Geenral Court (the state legislature), because “he believes it better balances workers’ abilities to seek new employment while ensuring cutting edge businesses can protect essential intellectual property,”
Legislative sessions last two years in Massachusetts ending July 31st of the even year. Thus, proposed legislation can be carried over from the first to the second year in a legislative session, but not after the second year. Thus, with no non-compete bill agreed to by both chambers by midnight on July 31, 2016, the bills must start again the lengthy process over in the next legislative session beginning on January 4, 2017.
To listen to, or read a story on the defeat of this non-compete legislation that ran on WBUR, a week ago, August 2, LINK – http://www.wbur.org/morningedition/2016/08/02/non-compete-agreements-failed-legislation
Current State Law
With no legislation in place, the case law on non-compete agreements remains the law of the Commonwealth of Massachusetts.
In that regard, an article of mine published July 16, 2012, remains relevant in the field of non-compete covenants and agreements that are still potentially enforceable in Massachusetts and many other states.
The article indicates that employers in many industries seek to protect themselves from unfair competition that would arise from employees using company knowledge or contacts to create or join a competing business, and that employees entering into employment agreements and later seeking to change positions need to be aware of the scope and coverage of non-compete agreements in Massachusetts.
The article further indicates that to protect companies, Massachusetts law has long held that an employment contract can include a provision restricting trade or competition for the employee after the employment ends, if:
What is reasonable depends on the facts in each case. The article then discusses three non-compete cases decided this year in Massachusetts which reveal how varied such cases can be.
In any of those cases, if you have questions or need assistance, please contact me at 617-875-8665 or email email@example.com.
You are the CEO or a C-suite officer or senior executive and you’ve been putting your heart and soul into the job. You’ve been meeting your deadlines, meeting your targets. You’re in line for a decent bonus or raise. Yet, instead of praise and reward, one day you are summoned to meet the Chairman or the CEO. HR is there also and you are told the Company is going to go “in a new direction” and your services are no longer needed. What do you do?
My recent article deals with this difficult subject –
My article on this subject was published on January 18, 2017 by CEOWorld magazine. You can also see the full article on wrongful termination for executives on my website.
If you or one of your colleagues has been terminated or faces potential wrongful termination I am glad to help preserve your interests and protect your rights. Please do reach out to me at firstname.lastname@example.org or call 617-875-8665.
Robert A. Adelson, Esq. has been a corporate, tax and employment attorney since 1977. Based in Boston, MA, he is a partner at Engel & Schultz, LLP, representing CEOs and senior executives on employment, executive compensation, equity and separation matters. Contact Attorney Adelson at 617-875-8665 or email@example.com.