A senior executive contract should explain what happens not only while the relationship works, but also when objectives change, control is transferred or either party wants to end it.
- The legal nature of the relationship should match the actual role and powers.
- Variable pay and severance terms need clear triggers, calculations and timing.
- Confidentiality and non-compete obligations should be precise and proportionate.
Role, powers and applicable regime
The contract label is not conclusive. Actual powers, autonomy, reporting line and the relationship with the company’s governing bodies help determine the legal framework.
This matters because termination rules, notice, compensation and other protections may differ. The written agreement should reflect the role actually performed.
Variable pay and severance protection
Bonus clauses should define targets, measurement, discretion, accrual, payment dates and the effect of leave, termination or a change of control.
Severance protection should state which events trigger payment, whether notice is separate, how the amount is calculated and how it interacts with mandatory rules or other payments.
Confidentiality, retention and exclusivity
Confidential information should be described sufficiently and obligations should remain workable during and after the relationship. Broad language without practical boundaries is difficult to apply.
Retention, permanence and exclusivity terms require a clear business reason, duration and economic treatment. Their interaction with bonuses and exit clauses should be reviewed as one system.
Preparing for an exit
A negotiated exit usually covers more than compensation. Bonus, notice, non-compete terms, communications, references, handover, equipment and confidentiality should be considered together.
Both sides benefit from clear documents that identify what is paid, which obligations continue and when each commitment must be performed.
General information. General information only. Senior executive relationships require review of the actual duties, contract, remuneration terms and circumstances of the proposed measure.