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Tips for Drafting Executive Employment Agreements
For every well-drafted executive employment agreement in the business world, there seem to be multiple poorly drafted agreements. Too often, employers simply copy and paste from older agreements without knowing anything about the identity or qualifications of the author of the original agreement, or the jurisdiction or circumstances in which the agreement was intended to be used. Moreover, employers sometimes borrow terms from an agreement that was heavily negotiated by an executive with considerable leverage. Under such circumstances, the agreement likely will contain terms that are less favorable to the employer than those that can be negotiated with another executive.
Most employers do not realize their mistakes until they are consulting an employment attorney regarding their rights and obligations with respect to an executive who has engaged in misconduct or is simply performing poorly. The purpose of this article is to provide tips for drafting executive employment agreements and to highlight the importance of consulting counsel before tendering an agreement to an executive for consideration.
Tip No. 1: Define 'Cause' Broadly
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