It may seem illogical for Executives to think about how their employment will end when they receive a job offer but negotiating upfront on separation benefits and terms helps to remove unknowns in your employment relationship. Negotiating your exit upfront, can help to remove some of the risk and stress if a future layoff or unexpected termination occurs.
Beth Bertelson regularly counsels senior executives and leaders on employment contracts and severance packages. She views good faith employment negotiations as akin to the role a prenuptial agreement plays in a relationship.
Bertelson explains, “Executives really need to think about leaving the company at the beginning, so they can move forward productively in their careers.”
“When people are signing on to work for a company, they may be signing on to restrictive covenants that can impact their career going forward. Signing a non-competes or non-solicitations, without receiving adequate consideration on the back end could put an executive on the bench for years.”
She added, “Upfront negotiations can also clarify issues related to long-term incentives, bonuses, roles and responsibilities, and avenues for each party to exit the relationship.”
Negotiating separation package benefits at the start of the employment relationship fosters goodwill on both sides, lessens uncertainty for the Executive, and eliminates legal risk to the employer.
Having an objective legal resource helps you avoid blind spots that can hinder your career opportunities. Beth Bertelson has assisted numerous Executives negotiate employment contracts both at the beginning and ending of the employment relationship.