Dallas Executive Lawyer: Reasons an Employer May Balk at Negotiating
An employer may decide to forego negotiating with an executive post-employment for several reasons.
Dallas employment lawyer Keith Clouse represents both executives and employers in employment-related disputes. He notes that some employers believe that terminated executives stand at a significant disadvantage when negotiating separation agreements. This leads many employers to initially refuse to engage in post-employment negotiations with executives. An employer may decide to forego negotiating with an executive post-employment because it:
- Assumes the executive has no bargaining power.
- Believes that the executive has already been paid for his contributions to the company.
- Believes that providing the executive with more than the bare minimum could lead to investor scrutiny and criticism.
- Believes that a terminated executive is so needy and helpless that he will sign any agreement.
Even when faced with this attitude, however, an executive can often nudge the company to negotiate by showing the risks the employer faces if it does not, such as risks associated with litigation, competition, and reputational damage. An employment lawyer can help an executive leverage these risks to persuade the company to negotiate a more fair separation package.
This article is presented by the Dallas employment law lawyers at Clouse Dunn LLP. To speak to an employment law attorney about a separation agreement, send an email to email@example.com or call (214) 239-2705.