Once your business has found the right candidate to take a place on the Board or to become a member of the Senior Management Team, the next step is to ensure that their terms of employment are clear and well documented.
Well drafted service agreements for your senior people are vital. This will ensure that both parties in the relationship understand what is expected of the other both during employment and if the arrangement terminates. In our opinion, when you consider termination terms there is a great deal more needed than the standard notice and garden leave clauses. Additional contractual protection can offer the company the flexibility it needs to remove a difficult executive whilst minimising the collateral risks of brand damage, poaching of clients, customers, staff and suppliers and exposure of confidentiality information. These can also reduce the threat of breach of contract claims.
It is also important to ensure that any connected matters such as shareholdings, appointments to the Board, bonus schemes and their connection with other companies in the group are well addressed in contract both during the engagement and on termination.
We can help you prepare solid agreements to protect the business and its brand. We can also help you enforce these terms when you find that they are not complying with the terms of their employment agreements.