The Basics: What is an Executive Employment Contract? At its core, an executive employment contract is a formal and binding contract between a company and an employee with significant management experience. The conditions contained in the agreement define not only the obligations to which the company and the employee mutually adhere, but also their expectations. The basis of the employee`s relationship with the company is defined, including, but not limited to, his remuneration, obligations during the period of employment, his subject to restrictive agreements (for example. B, its non-compete obligations) and its conditions/conduct leading to termination. Because of the non-disclosure, non-competition and solicitation provisions contained in a contract of employment (or in an ancillary agreement that the manager begins to enter into), an employer may attempt to prevent an executive from working for competitors for a certain period of time after the manager`s employment ends. In general, restrictions may be enforceable after hiring if: (1) they are necessary to protect customer relationships or the Employer`s trade secrets/confidential information, and (2) are appropriate in terms of the duration, geographic scope and scope of the prohibited activities. Whenever you draft or negotiate an executive employment contract, remember to keep these important provisions in mind and make each mandate meaningful – this will benefit not only your relationship with your new employee, but also your company in the long run. Executive employment contracts generally determine the law that a court or arbitrator applies to interpret the contract and resolve future disputes, as well as the state in which those disputes are to be heard. Leaders must be aware that they can commit to resolving a future disagreement in a distant state. A manager`s employment contract usually sets an effective date and stipulates that the initial period of employment is for a period of several years, subject to early termination under other provisions of the agreement. On the other hand, the “all” employment relationship may be terminated by either party at any time for any reason that is not illegal and without notice.

The contract should indicate whether the relationship is of a duration or at will, and whether the term ends at the end of the initial term or is automatically extended for renewal periods without notice. .