Injecting Creativity into a Separation Agreement
A departing executive may increase the overall severance benefits he receives by negotiating for creative alternatives to standard separation agreement terms.
Dallas employment lawyer Keith Clouse regularly drafts separation agreements for senior executives. He notes that these agreements can differ widely in their terms. For example, while many contain similar basic terms, some may address non-monetary post-separation considerations, such as the making of a joint termination statement or a mutual non-disparagement clause.
A departing executive may increase the overall severance benefits he receives by negotiating for creative alternatives or additions to standard separation agreement terms. An executive could consider negotiating for:
- A consulting period following the termination date;
- Postponing the termination date to allow equity compensation to vest or to allow the executive to qualify for and receive a bonus;
- Increased compensation for extending the length of a non-compete agreement;
- Fringe benefits during the severance pay period, such as insurance, car allowance, or other benefits;
- Outplacement services;
- Office support services, such as the use of an office space and secretarial support; and
- Compensation for agreeing to cooperate with the employer on any legal or regulatory issues that may arise during the severance period.
To speak to an employment law attorney about a separation agreement, send an email to firstname.lastname@example.org or call (214) 239-2705. This article is presented by the Dallas employment law lawyers at Clouse Dunn LLP.