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Maximize the Value of Your New Position with the Help of an Experienced Los Angeles Executive Compensation Lawyer
When negotiating an executive employment contract, making sure you receive an appropriate base salary is one part of the process. In-demand executives can secure a variety of types of benefits as well, and these benefits can significantly increase the value of the relationship. Each Los Angeles executive compensation lawyer at Attorneys for Employees has extensive experience negotiating executive employment contracts, and we can use our experience to your advantage.
10 Types of Benefits We Negotiate for Our Executive Clients
Executive benefits can take many forms; and, as an executive, it is important to make sure you do not overlook any opportunities when negotiating your next employment contract. For example, here are 10 types of benefits we frequently negotiate for our executive clients:
1. Signing Bonuses
There are three strong justifications for signing bonuses, all of which may be more or less relevant in different scenarios. Attorneys for Employees can assist you with negotiating a signing bonus based on one or more of the following:
- The losses you will incur as a result of leaving your current position (i.e., loss of unvested stock options);
- The risk you are taking by leaving your existing position with an established company to help a different company grow or pursue a new direction; and/or,
- Demonstrating the company’s belief in your ability to lead it into the future.
2. Performance Bonuses
Performance bonuses can take the form of cash or equity. They can have various triggers, and they can vary greatly in amount. Oftentimes, performance bonuses are percentage-based, as this mitigates the company’s financial risk while maximizing the executive’s incentive to pursue growth.
3. Retention Bonuses
Retention bonuses are designed to keep newly-hired executives onboard; and, while they serve an important function for companies, they can provide significant additional incentives to executives. When negotiating a retention bonus, it is critical to clearly outline the timing and terms upon which the bonus is owed.
4. Relocation Assistance
If you will need to relocate to take on your new position, you should not have to bear the cost of doing so. Relocation assistance packages can cover all of the costs of moving to take an executive position, including temporary housing, moving expenses and travel.
5. Expense Accounts
Executive expense accounts can cover everything from the cost of maintaining professional licenses and memberships to the cost of business meals and travel.
6. Equity
Equity will account for the most significant portion of an executive’s total compensation and benefits package in many cases. Similar to retention bonuses, when negotiating equity rights, it is imperative to ensure that the relevant terms and conditions are crystal clear. This requires having an experienced Los Angeles executive compensation lawyer on your side.
7. Insurance
Health insurance, life insurance, directors’ and officers’ liability insurance, and various other types of insurance can (and generally should) be included in an executive’s benefits package as well. While many companies offer these as a matter of course, it is still important to make sure you have the ability to contractually enforce your right to all of the benefits of your employment if necessary.
8. Pensions and Retirement
The same goes for pensions and retirement benefits. Even if your total compensation package far exceeds the maximum annual retirement contribution limits, there is no reason to leave any part of your compensation package in question or on the table.
9. Vacation Time
As an executive, you need time away to rest and recharge. Your Los Angeles executive compensation lawyer can negotiate for paid time off in light of applicable industry standards, and your lawyer can make sure that you will have the right to cash out any vacation time you accumulate but do not use.
10. Golden Parachutes
Negotiating a golden parachute into your executive employment contract protects you in the event of a change in ownership or control. If you have a golden parachute and the company gets sold, this will provide you with the automatic right to receive a severance package that you have negotiated in advance.
Schedule an Appointment with a Los Angeles Executive Compensation Lawyer Today
If you are preparing to take on a new leadership position with a company in Los Angeles, we encourage you to contact us for more information. Contact us today and tell us how we can get in touch online.