subject: How Does An Executive Employment Agreement Differ From A Regular Employment Agreement? [print this page] Sometimes, when an executive is considering negotiating the terms and conditions of his or her employment, he or she may need to consider a few essential points that would help form a mutually beneficial executive employment agreement. It would be wise for the two parties to the agreement to settle as well as outline the major issues pertaining to the actual negotiations for an executive employment agreement. The agreement can be viewed from either the employer's perspective or from the perspective of the employee.
Some of the points that will benefit the employee include the scope of employment, salary, bonuses, benefits, terms and termination, and reimbursement of expenses. On the other hand, the executive employment agreement when viewed from the perspective of the employer shall deal with the term of employment, duties as well as responsibilities of the executive, location of work, compensation that will include specifying basic salary, payment of compensation, bonus, as well as other employment benefits including business expenses, benefit plans, vacation, and stock options. The executive employment agreement from the perspective of the employer shall also take into account the executive's business activities, termination of employment including termination with and without cause, resignation, and cooperation.
In any case, the executive employment agreement shall state the names of the employer and the employee who are desirous of entering into an agreement so that all manner of terms and conditions from either party's viewpoint have been laid down and defined and which is entered into for consideration of the mutual covenants and agreements that have specially been set forth in the agreement between the two parties and which has been signed after having been read and understood and which shall form the basis of all future resolution of problems should they occur. The benefits of having an executive employment agreement can be seen in the lower costs as well as increased productivity while managing executive employees.
The executive employment agreement creates the framework that favors employer and employee understanding of their relationship with one another and helps define the scope of employment as well as who is the authority under whom such agreement has been signed. There is an obligation of strict compliance that must adhere to the directives as well as guidelines of the agreement and for undertaking any outside business interests by the employee, a prior written permission from the Board may be required.
There is also set down conditions for notice period in case of resignation and the employer may be permitted to terminate the services of the employee in case of misconduct, breach or business damage and because of conviction.
The executive employee agreement is readily available in the market and finding one should not pose any problem, as there are many vendors who specialize in such documents and for a few dollars one may obtain completely researched and well-formed executive employee agreement. There is no need for researching and creating one from scratch as buying these documents provides an avenue for obtaining comprehensively created solutions that have had experts draft them and they are suited for all manner of use. Spending a few dollars, one could reap great benefits, as there is plenty to be saved in terms of time, money and cost as well as being tailored to suit individual requirements.
