Robert Adelson, Esq.
  • Blog
  • About

Executive Retention Packages – Terms and Negotiations

10/12/2022

0 Comments

 
On October 7, 2022, the executive career advancement website IvyExec published an article I wrote on “Executive Retention Packages – Terms and Negotiations.”

This new article is designed for CEOs, CMOs, CSOs, CTOs and other C-suite and senior executives in technology and life sciences, and in other areas of the economy.  This article  might also be of benefit to many directors and mid-level executives.  In each case, this article is directed to executives being recruited and who have now or anticipate soon receiving, an attractive offer to move on, yet who, at the same time, are also critical to their current company.  It is in that circumstance this article suggests how your current company might provide a significant retention package for you to stay or to at least work with them to delay the full impact of your complete departure.

This frequently occurs when the company is “in play”. However, besides this change of control situation, my article discusses a number of other circumstances where executive retention negotiations occur, including where:
  • The company is nearing a critical milestone, necessary for a funding round,
  • The company is planning its IPO and needs an executive lockup,
  • The executive has close relationships with key accounts and the company fears a significant loss of business,
  • The executive has close relationships with key management and performers in the company and fears a significant attrition,
  • The executive as an inventor, innovator and technologist has a critical role in product creation, maintenance or development, or
  • The executive has achieved a level of notoriety such that his or her loss could have a negative impact on perception of the company within the customer or business community where the company operates.
My article also discusses how to raise the issue of executive retention, how to negotiate and frame the executive retention package as a mutually beneficial “win-win” for the executive and the company, and finally the key terms to seek in your executive retention agreement.

To see my full IvyExec career advancement website article, go to LINK: https://www.ivyexec.com/career-advice/2022/executive-retention-packages-terms-and-negotiations/

Or on my website at https://www.executiveemploymentattorney.com/executive-retention-packages-terms-and-negotiations/

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.
0 Comments

Negotiating Favorable Executive Equity Terms in an LLC – Capital vs. Profit Interests

5/5/2022

0 Comments

 
Two weeks ago, on Sunday April 20, 2022, CEOWorld magazine published an article I wrote on “Negotiating Favorable Executive Equity Terms in an LLC – Capital vs. Profit Interests”

This new article is designed for CEOs, C-level and senior executives, who receive a job offer from a limited liability company where LLC equity will comprise an important component of your executive compensation package. Most senior executives are familiar with executive stock and stock options, including ISOs and non-qualified option grants offered by corporation employers.  But how do you evaluate equity that is not stock or stock options? What issues should you be concerned about when your executive equity package is comprised of LLC “member units”, called profits interests or capital interests?  

This article will cover issues important to the executive when your equity compensation is units in an LLC, including
  • The difference in rights of the two kinds of LLC interests – profits interests and capital interests,
  • The difference in taxation of profits and capital interests,
  • The advantages that an LLC profits interest can offer over a corporation’s equity interest, whether stock or options, if significant equity appreciation is likely,
  • The importance of determination of profit interest threshold amount,  
  • Important protections to assure your share of the value appreciation if the LLC succeeds,
  • Other valuable protections to assure your right to a cash payout with others if the LLC succeeds.

My article concludes with discussion of key terms to watch for in the LLC operating agreement.  My article stresses the importance of negotiating in your own equity grant, job offer or employment contract that those key fixed Operating Agreements terms will be applied in a manner to assure your reasonable protections and the benefit of your bargain in accepting the job offer with this LLC.

To see my full CEOWORLD magazine. article, go to LINK:
https://ceoworld.biz/2022/04/20/negotiating-favorable-executive-equity-terms-in-an-llc-capital-vs-profit-interests/

Or on my website at https://www.executiveemploymentattorney.com/negotiating-favorable-executive-equity-terms-in-an-llc-capital-vs-profit-interests/

This was my 37th article published in CEOWORLD since 2016.  Previously, the editor advised that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website and add CEOWORLD magazine in my LinkedIn profile’s “Experience Section” as an “Opinion Columnist.” and authority in the field.  

On its own initiative, CEOWORLD magazine created on their website a library of Robert Adelson published articles. You can peruse this library and/or read as many of my 37 published articles as you wish. See https://ceoworld.biz/author/robert-adelson/

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/

It is my hope that this article will be of benefit to CEOs, C-level and senior executives who, at some point in your career, are offered equity interests in an LLC and need to know what to watch out for also what opportunities LLC interests can offer. Feel free to tweet or share this article. If you or any colleague of yours has a need in this area, please do reach out to me at 617-875-8665.
0 Comments

Executive Employment Agreement for the Newly-Minted CEO or C-Suite Executive

4/9/2020

0 Comments

 
A week ago, on March 31, 2020, CEOWorld magazine published an article I wrote on “Executive Employment Agreement – An Overview for the Newly-Minted CEO or C-Suite Executive”.  The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and the CEOWORLD “Logo” on my website.
Picture
This was my 26th 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. The magazine has also created a library of my articles on its website, where you can click on and access any of my more than 20 articles with CEOWORLD, published in recent years beginning in 2016.  See https://ceoworld.biz/author/robert-adelson/

​This article, my most recent, published March 31st, is designed for CEOs, C-level and senior executives, especially those who receive an executive job offer or employment contract for their first CEO or C-level position.  The article provides answers and explanations on these important questions:
  • What is an executive employment agreement?
  • Why is this agreement important to the company?
  • Why is this agreement important to you?
  • What are the key terms and conditions that you should focus on?
  • How do you achieve success in negotiating these executive contract terms?

The article also includes a brief discussion of key terms to seek in a CEO or C-suite employment agreement including terms on the following:
  • Position, duties and authority,
  • Executive compensation and bonus structure,
  • Tax-favored executive equity and/or LTIs,
  • Severance terms and triggers,
  • Noncompete and other restrictive covenants.

To see my full CEOWorld magazine. article, go to LINK:
https://ceoworld.biz/2020/03/31/executive-employment-agreement-an-overview-for-the-newly-minted-ceo-or-c-suite-executive/
Or on my website at https://www.executiveemploymentattorney.com/executive-employment-agreement/

​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 newly-minted CEOs, COOs, CMOs, other C-Level and senior executives to understand the importance of their first executive employment agreement and to aid them in the negotiation for appropriate terms commensurate with the position each is offered. If you or any colleague of yours has a need in this area, please do reach out to me at rob@attorneyadelson.com.

Author: Robert AdelsonRobert Adelson has been a corporate and tax attorney since 1977. He began as an associate at nationally prominent New York City “mega” law firms, first at the Wall Street firm Dewey Ballantine Bushby Palmer & Wood and later at the Park Avenue firm Weil Gotshal & Manges. In 1985, Adelson returned home, where he has since established himself as a respected Boston business attorney. He has attained partner at several small and midsize Boston law firms, most recently at Lawson & Weitzen LLP and then Zimble Brettler LLP, where he was a partner from 1994 to 2004 before becoming a partner at Engel & Schultz LLP from 2004 to 2019. With the breakup of that firm over semi-retirement of senior partners, Robert Adelson formed the firm Adelson & Associates, LLC, where he is the principal, that commenced operations 1/1/2020.
0 Comments

    Archives

    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    January 2021
    November 2020
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    February 2020
    January 2020
    December 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    July 2018
    June 2018
    May 2018
    March 2018
    November 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017

    Categories

    All
    Benefit Corporations
    Biotech Executive
    Biotechnology Executives
    Board Of Directors
    Career Advancement Covenants
    Career Prospects
    CEO Bonus Compensation
    CEO Compensation
    CEO Compensation Package
    CEO Contract
    Ceo Contract Terms
    Ceo Employment Agreement
    CEO Employment Contract
    CEO Equity Compensation
    Ceo Job Offer
    CEO Job Offer Letter
    Certified B Corps
    CFO Compensation Package
    CFO Contract
    CFO Employment Agreement
    CFO Employment Contract
    CFO Job Offer Letter
    CFO Severance Agreement
    Change Of Control
    Change Of Control Agreements
    CIO
    Clawbacks
    C-level Equity Compensation
    C Level Executive Pay
    C-level Executive Pay
    CMO Employment Agreement
    CMO Employment Contract
    Companies
    Competition
    Contractors
    COO
    COO Compensation
    Coo Compensation Package
    COO Employment Agreement
    COO Employment Contract
    COVID-19
    CSO
    Cso Compensation
    CSO Compensation Package
    CSO Contract
    CSO Employment Agreement
    CSO Employment Contract
    CSO Severance Agreement
    C-suite Executive Compensation
    CTO Compensation Package
    CTO Contract
    CTO Employment Agreement
    CTO Employment Contract
    CTO Severance Agreement
    Defamation
    Disparagement
    Employees
    Employment Contract
    Employment Discrimination
    Equity Compensation
    Executive Bonus
    Executive Bonuses
    Executive Career
    Executive Career Advancement
    Executive Careers
    Executive Compensation
    Executive Compensation Attorney
    Executive Compensation Negotiation
    Executive Compensation Package
    Executive Consulting
    Executive Contract
    Executive Contract Negotiation
    Executive Contract Terms
    Executive Employment
    Executive Employment Agreement
    Executive Employment Agreement Lawyer
    Executive Employment Contract
    Executive Employment Lawyer
    Executive Employment Terms
    Executive Equity
    Executive Equity Compensation
    Executive Job Offer
    Executive Job Offer Letter
    Executivepay
    Executive Pay
    Executive Performance Compensation
    Executive Relocation Package
    Executive Retention Agreement
    Executives
    Executive Salary
    Executive Separation
    Executive Severance Agreement
    Executive Severance Lawyer
    Executive Severance Package
    Executive Severance Terms
    Executive Stock Compensation
    Executive Stock Options
    Executive Termination
    Family Businesses
    Female Executives
    Founder CEO
    Founders
    Incentive Stock Options
    Interim CEO
    IRC Section 1202
    Market Niche
    Massachusetts Employment Law
    Massachusetts Non Compete Agreement
    Massachusetts Non-compete Agreement
    Medical Devices
    Mutual Nondisparagement
    Negotiations
    Non Compete Agreement
    Non-compete Agreement
    Non Compete Agreement Attorney
    Non-compete Agreement Attorney
    Non-disparagement
    No Rehire Clause
    Phantom Stock
    Promissory Estoppel
    Remote CEO
    Remote Executive
    Remote Work
    Restricted Stock
    Restricted Stock Units
    Restrictive Covenants
    Retention Agreement
    Retention Bonus
    RSU
    RSUs
    Section 83(b)
    Senior Executives
    Severance Triggers
    Social Entrepreneurship
    Startup
    Startup CEO
    Startup Equity
    Startup Funding
    Stock Options
    Taxation
    Termination For Cause
    Toxic Executives
    Turnaround CEO
    Women Executives
    Womeo CEOs
    Wrongful Termination

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • Blog
  • About