212.627.8100Whether you are being actively recruited by an employer or you are applying for a position as an executive or professional, a major component of the hiring process involves negotiating a fair executive compensation package that reflects your skills and experience while also clearly defining the terms and conditions of your employment. Although you may be eager to move through this process as quickly as possible so that you can get started in your new role, rushing through this step can be risky and may increase the chances of a dispute arising in the future. Negotiating an executive compensation package is just that—a negotiation. This means that you are not obligated to immediately agree to every proposed term set forth by your prospective employer. Instead, you can work with a highly qualified and experienced New York employment contract attorney to perform a legal review of the proposed employment agreementto determine whether the terms are fair, reasonable, and align with your best interests. Should any issues arise, your skilled lawyer can help you negotiate the terms to resolve and clarify all aspects of the employment compensation package. This post will explore some of the strategies for negotiating executive pay in New York and how enlisting the guidance of an experienced New York employment attorney can provide you with the support and advocacy you need to step into your new executive or professional role with confidence.
What Typically Makes Up an Executive Compensation Package in New York
First, it’s helpful to identify the elements that are typically included in an executive compensation package. Executive roles tend to have more complex compensation structures, extending beyond the base salary. As you review the proposed employment agreement, you can expect to see items like the base salary, bonuses, and commissions for certain types of professionals. There may also be items like equity opportunities (i.e., stock options, RSUs, etc.). Other benefits and perks can be addressed, such as health insurance, life and disability insurance coverage, relocation expenses, vacation and other paid time off, use of a company car, and any other fringe benefits that may accompany this executive position. It’s also important to check for any severance provisions when reviewing the proposed executive compensation package, including any proposed non-competition agreement, as these details may not seem important now, but can be crucial in the future. As you approach the executive compensation package, it’s worth having a trusted New York executive compensation lawyer assess these details to ensure that they protect your best interests and reflect your strengths and expertise.
Key Legal Considerations to Watch For When Negotiating an Executive Compensation Package
Although reviewing the salary and financial benefits of the executive compensation package will likely hold the bulk of your attention, it’s equally important to assess the finer details of the compensation package. For example, be sure to scrutinize any at-will employment disclaimers to ensure that you understand the grounds for termination by either the employer or the employee and any required notice periods. Look for provisions that dictate the frequency of in-office versus remote work. Your attorney can also help you understand any restrictive covenants included in the proposed employment agreement, such as non-compete agreements, non-solicitation agreements, confidentiality provisions, and other considerations that can affect your relationship with your employer. Executive compensation packages often include dispute resolution mandates, such as arbitration or mediation, that cover disputes that arise during your employment or after it terminates. Generally speaking, the best way to ensure that you fully understand the terms and conditions of your executive compensation package is to partner with an experienced and trusted New York employment contract lawyer who will look out for your best interests at every opportunity.
Tips for Effective Negotiations With Your Employer in New York
As you approach the process of negotiating your compensation package and related agreements, it’s essential that you recognize your right to propose changes to the terms of the contract. There are some steps you can take before the negotiations begin that can set you up for a successful and productive negotiation, the first of which is knowing your market value. When you are confident in the benefits you will bring as an executive, you can make a strong case for a fair and favorable executive compensation package that aligns with your assets and experience. It’s also important to recognize that hiring an attorney is within your rights, as this trusted legal professional can support your request for a more reasonable and equitable compensation package. Moreover, if you have competing offers from different prospective employers, your skilled employment contract lawyer can help you strategically leverage these offers to secure a favorable outcome.
Recognizing Red Flags in Executive Contracts
There are certain warning signs in executive compensation packages that are worth noting so that you can prepare yourself for how to respond appropriately and effectively if the need arises. For instance, any contract that contains vague or ambiguous language, particularly concerning matters of bonuses, equity, and termination, may require more clarity before you sign anything. You have the right as a prospective employee to ask questions about the terms and conditions of the contract and push back against unclear language. The decision of whether or not to step into a new executive position is a big one, and it’s worth having a highly experienced and dedicated New York employment law attorney by your side to look out for and protect your best interests before you sign these documents. Once your knowledgeable legal advocate has reviewed the fine print to ensure that the terms are fair and enforceable, you can move forward and enjoy an exciting new chapter in your career.
If you are weighing whether to accept a new executive or professional position in New York or New Jersey, it’s essential to negotiate a fair and favorable compensation package to minimize potential issues or misunderstandings later on. Reach out to the dedicated and highly experienced legal team at Levy Ratner today by calling (212) 627-8100 to learn more about effective executive compensation package negotiations.