Employment Contract Negotiation Lawyers
The attorneys at Jordan El-Hag & Associates, P. C. work to help employees of all backgrounds with legal issues related to labor and employment law, including litigation related to executive pay and more.
Upper management is the most powerful branch of an organization and is responsible for leading lower-level employees to success and guiding the company. Upper management is responsible for making sensible decisions for the company/organization, considering both short-term progress and long-term goals. Executives who hold these critical, high-impact roles are paid with generous packages. These executive compensation packages include a mix of pay and benefits that compensate for their hard work, skills, vision, and leadership.
However, in the past, employees at high levels of a company received more pay than others. However, shareholders scrutinize financial and non-monetary pay packages. They may not be willing to give the same executives the right to these former packages.
Some of the items that often make up executive compensation include:
- Deferred Compensation
- Stock and Equity
- Retirement benefits
Most executives are compensated with a baseline salary and an array of short- and long-term bonuses. Companies pay them accordingly for the demands of an upper management position. Bonuses can make up a significant part of some executives' compensation packages. These bonuses may include:
- Signing bonuses are a bonus that is guaranteed to an executive when they have signed their job offer.
- Bonuses: Guaranteed: An executive is contractually entitled to receive additional compensation if the company meets its goal.
- A discretionary Bonus is a bonus awarded when the executive meets specific job performance metrics and goals.
- Retention bonuses are a form of compensation often presented to employees before large company transitions, such as when the company is undergoing a merger or acquisition.
The NY Law Firm of El-Hag & Associates, P.C., offers experienced legal representation for executives with compensation issues and those executives who have been wrongfully terminated from their job.
A severance package guarantees executives a gentle landing when they leave a company. These packages are often referred to as gold parachutes because they make these agreements less risky for executives.
These agreements can fluctuate in many ways, one of which would be a severance package. An unsatisfactory severance agreement or issues with a new company's policies might give you legal recourse for a faulty termination.
Expertise in Employee Stock and Equity Compensation
- Stock packages often constitute a significant component of executive compensation.
- Restricted shares are often awarded to executives as part of their compensation package. They are forfeited if you leave the company before they've vested.
- Performance stocks are shares awarded to executives who meet or exceed specific performance goals.
- Stock Options provide company shares at a price set during a period. The value generally increases as organizational performance improves.
- When employees sign equity compensation agreements, it is essential to be clear on the terms of the employment agreement. Equity can make up a large portion of their total compensation. Knowing that in advance will help determine how much they should be paid.
- Executive perks are given to executives who, through their work, have special privileges that others do not. These include the ability to work from home or flexible hours to receive a company vehicle, parking near work, and flying in a private airplane.
- New regulations make it essential to be transparent about the perks which are a part of an executive's compensation package.