What To Negotiate In Your Next Employment Contract

Often times I receive calls from clients saying, “Robin, I’m negotiating for a new job.  What provisions do I need to make sure that I have in my contract?” Here are my Top 10 Topics I recommend you address:

1.       What will be your Title and Reporting Relationship?

2.       Work location – where will you work, and can you work remotely?  Do you need relocation expense provisions?

3.       A general description of your duties and authority to get things done.

4.       Base Salary and opportunity for increases

5.       Benefits – anything beyond the “standard” package, like executive life or disability coverage?

6.       What is your target short-term incentive and how do you attain it?

7.       What will your annual long-term incentive compensation look like?  What is the vesting schedule?  What is the composition of the equity between options, restricted share units and performance shares? What happens to your equity upon a change of control, or a termination of employment?

8.       If commissions are part of your compensation, ask to see the commission plan to understand when your right to be paid is attained and what happens upon any termination of employment.

9.       Termination provisions  - how much advance notice is required for termination? It is also very important to add definitions for Cause, Good Reason, Disability and what your heirs receive if you die.

10.   Severance: How will the company help you transition to new employment with pay and benefits? 

The secret to success in these negotiations is not just knowing what to ask for, but also how to ask for it. Give us a call and let us help you take your best possible shot at success!