Executive employment agreements and equity arrangements are the “golden keys” that unlock “golden handcuffs”. Signing bonuses serve as the key to open the door to hiring. Vesting options, bonuses and other “golden handcuff” benefits make executives more reluctant to leave their current position for a new one. However, signing bonuses are often used as a tool of persuasion – urging an executive to sign with a new company. Signing bonuses are crucial when accompanying a job offer that has a lower salary than an executive wants.
CEO, Maria Leone* sought out the counsel of Attorney Robert Adelson who helped her negotiate an increased signing bonus with a new firm that expressed interest in hiring her. Maria Leone was currently working as a CEO at a NY ad agency where she made a comfortable salary with foreseeable bonuses and vesting options, however when a young, rising agency (we will call Marketing X*) expressed interest with a higher salary Maria grew interested. Since the Marketing X was still young, and the salary the company was offering was not substantially higher Maria wanted to explore her options and negotiate her executive contract terms.
Attorney Adelson negotiated the executive’s employment agreement as well as her equity arrangements, convincing Marketing X to set up a package with stock and options to reward Maria’s loyalty later down the road. Attorney Adelson also negotiated a substantial increase in the signing bonus and an increased salary as well. The signing bonuses and equity arrangements that Marketing X arranged from Maria Leone helped make her particular transition between companies smooth and lucrative, making Maria whole for what she lost when leaving her current position.
Robert Adelson was successful with this representative case because he applied his over 30 years experience, care and time to help Maria Leone achieve a more desirable position. As a Boston executive employment attorney, with clients across the country, Attorney Adelson has helped many executives negotiate signing bonuses and employment agreements. This representative case highlights the success that Attorney Adelson’s executive compensation negotiations led to for CEO Maria Leone.
*All dates, client’s names and companies have been altered to keep confidentiality.
Last Tuesday, on May 29, 2018, CEOWorld magazine published an article I wrote on “Structuring Bonuses in Your CEO Compensation for Maximum Benefit.” 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 who when negotiating a new job offer or employment contract need to give equal and perhaps greater focus on the structure and terms of bonus as they do to base salary compensation.
My article discusses five (5) key bonus structures:
The article also suggests other important issues in the determination, calculation and payout of the bonus.
To see my full CEOWorld magazine. article, go to LINK: http://ceoworld.biz/2018/05/29/structuring-bonuses-in-your-ceo-compensation-for-maximum-benefit/
Or on my website at https://www.executiveemploymentattorney.com/structuring-bonuses-in-your-ceo-compensation-for-maximum-benefit/
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 considering or re-visiting the executive compensation piece of a job offer or employment contract and need to focus on bonus structure and terms every bit as much as base salary. If you or any colleague of yours has a need in this area, please do reach out to me at firstname.lastname@example.org.
I have represented CEOs and senior executives working for companies in Massachusetts, elsewhere in New England and across the country, and I am available to answer all of your important questions. Contact me, your attorney for executive employment agreements at email@example.com or call 617-875-8665.