Joining a board of directors as an executive can be rewarding, yet has its pitfalls. Boston executive employment attorney Robert Adelson serves the role of an employment advisor to help executives weigh the costs and benefits of joining a board, as well as negotiates their compensation package. The many benefits of joining a board include but are not limited to lucrative stock and options, networking opportunities and access to a new source of information. However, despite these rewarding benefits, an executive who joins a board takes on a large task – one which, if left unfulfilled can expose them to shareholder lawsuits.
In November of 2013, executive Maxwell Vanderburgh* was asked to serve on a board of directors for an outside company, Mr. Vanderburgh’s C-level executive experience, knowledge and day-to-day management made him the perfect man for the position. When making his decision, Mr. Vanderburgh called on executive employment attorney and advisor Robert Adelson to help him advise the position and negotiate his terms. Attorney Adelson expressed the importance of understanding his rights and duties on the board and potential liabilities he could be exposed to. After Mr. Vanderburgh weighed the pros of cons of this position and realized serving on a board would advance his career and be a rewarding experience the two sat down to negotiate. Upon negotiating Maxwell Vanderburgh’s compensation package, Attorney Adelson implemented proper protections to limit risk exposure and negotiate lucrative stock and options. To ensure protection, Attorney Adelson made sure that there was proper liability insurance in place to protect executive Maxwell Vanderburgh in the event of any suit. When negotiating the executive’s compensation package, Attorney Adelson explained the responsibilities that must be upheld by a board director; most importantly being a director’s fiduciary duty. This duty is comprised of three separate duties: a duty of care, a duty of loyalty and a duty of candor. In short, these duties require the executive to make informed decisions, act in the interest of the organization it is representing and always provide correct information to shareholders. Executive employment attorney Robert Adelson was able to help and advise CEO Maxwell Vanderburgh on his decision to become a board director. Attorney Adelson also worked with Mr. Vanderburgh, hands on, throughout the stages of negotiation so Mr. Vanderburgh would receive a compensation package that would be rewarding as well as protect him from any potential suit. If you or one of your colleagues is a CEO or senior executive who is considering taking on a board of director role, I am glad to assist. Please do reach out to me at [email protected].
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Last Thursday, on February 1, 2018, CEOWorld magazine published an article I wrote on “How to Renegotiate Your CEO Employment Contract When You Have Achieved Success.” This article was designed for CEOs and other C-Suite, VPs or other senior executives who have achieved a level of success and seek a greater share of the benefits his or her leadership has brought to the company, as well as a refresh of the level of incentives as he or she takes the company to the next level. My article discusses why the Board would agree to sweeten the package for the CEO (or other senior executive), including these reasons:
The article then suggests key items to seek in negotiations, and offers suggestions on negotiation strategy to improve chances for a successful outcome.
Among the strategies suggested are to plan and develop a back-up to enhance your bargaining position and also for possible use if negotiations don’t succeed, and finally use of an “ace in the hole” to achieve success. To see my full CEOWorld magazine. article, go to LINK: http://ceoworld.biz/2018/02/01/how-to-renegotiate-your-ceo-employment-contract-when-you-have-achieved-success/ or my website at https://www.executiveemploymentattorney.com/articles-section/how-to-renegotiate-your-ceo-employment-contract-when-you-have-achieved-success/ 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 have achieved a level of success on the job and deserve and would like to seek a share of the benefits their success has conferred to owners and shareholders and refresh of incentives as they seek to take the company to the next level. If you or any colleague of yours has a need for advice in this area, please do reach out to me, executive employment lawyer, Robert Adelson, Esq., at [email protected]. Phantom Stock Allows Executives to Get the Benefits of Equity Compensation from Family Businesses9/11/2017
On September 6, 2017, CEOWorld magazine published an article I wrote on “Getting the Benefits of Equity Compensation from Family Businesses through Phantom Stock.”This article was designed for CEOs, C-suite executives and other senior executives who currently work in a family business or are offered a position in a family business and receive now or are offered NO equity compensation because most family businesses do not issue equity to non-family members.
My article discusses the use of Phantom stock as a mean to give the executive a substitute to equal for him or her all the benefits that stock, options or RSUs would provide to the executive in a non-family business. Techniques used in the past and offered to the reader can produce a true “win-win” by providing key benefits to the family business as well as to the CEO or other senior executive, including the following
My article includes a hypothetical example, where a 55-year-old executive is to take the CEO position as successor to the 75-year-old family CEO. In this example, the successor CEO negotiates for the establishment of a phantom stock plan as a condition to taking the position. The intention is that the successor CEO receive phantom stock under the phantom stock plan as an important part of his (her) executive compensation package and that the plan would continue after that to enable the successor CEO to use phantom stock to recruit other non-family senior executives to further bolster management of the family business. To see my full CEOWorld magazine. article, go to LINK: http://ceoworld.biz/2017/09/06/getting-the-benefits-of-equity-compensation-from-family-businesses-through-phantom-stock/ or my website: https://www.executiveemploymentattorney.com/articles-section/getting-the-benefits-of-equity-compensation-from-family-businesses-through-phantom-stock/ 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 (1) CEOs and senior executives working in family businesses, (2) CEOs and senior executives considering taking positions in family businesses, and (3) leaders of family businesses seeking to recruit non-family members as the new CEO or other senior executives. If you or any colleague of yours has a need in this area, please do reach out to me, your executive employment lawyer, at [email protected] or call 617-875-8665. On July 10, 2017, CEOWorld magazine published an article I wrote on “Restricted Stock And Other Equity Options For Your Executive Compensation Package” This article was designed for CEOs, C-suite executives and other senior executives who are negotiating stock, options, RSUs or other equity as part of their compensation package.
The article first discusses the key ways to assure value in your executive equity compensation package –
The article then goes on to discuss the merits of Stock Options both, non-qualified and incentive stock options, Restricted Stock and Restricted Stock Units (RSUs). The article indicates that in the high growth and turnaround situations, the much better choice is to get all or a significant part of your equity structured as Restricted Stock, which offers these. significant advantages:
My article also discusses how RSUs structure is quite desirable in companies where high growth is not expected and the executive wants to be assured of equity that will have value. For more information on RSUs, see my February 2017 CEOWorld article focused entirely on RSUs – LINK: http://www.executiveemploymentattorney.com/articles-section/the-advantage-of-rsus-in-your-ceo-compensation-package/ My article on “Restricted Stock And Other Equity Options For Your Executive Compensation Package” was published July 10, 2017 by CEOWorld magazine. To see my full article, go to http://www.executiveemploymentattorney.com/restricted-stock-and-other-equity-options-for-your-executive-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. It is my hope that this article will be helpful to senior executives who are negotiating equity terms as part of their compensation package going into a new position or in connection with a raise, promotion or change of control. If you or any colleague of yours has a need in this area, please do reach out to me, your executive employment lawyer, at [email protected]. On May 30, 2017, CEOWorld magazine published an article I wrote on “Getting Executive Severance Compensation When You Choose to Quit” This article was designed for CEOs, C-suite executives and other senior executives who for reasons beyond their control want to quit their current position and ought to be able to get appropriate executive severance compensation in connection with their separation.
My article takes up four main areas:
To see my full article, go to LINK: http://ceoworld.biz/2017/05/30/getting-executive-severance-compensation-when-you-choose-to-quit/ or my website http://www.executiveemploymentattorney.com/articles-section/getting-executive-severance-compensation-when-you-choose-to-quit/ 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 this article will be helpful to senior executives who are considering quitting their current position or feel they are now being forced out, and deserve severance and the change to start anew while keeping their careers on the upward trajectory. If you or any colleague of yours has a need in this area, please do reach out to me at [email protected]. |
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