Executive Compensation Negotiations

Highly Experienced New Jersey Employment Attorneys Negotiating Executive Compensation Agreements

As an executive or senior manager, the terms of your employment contract can have a lasting impact on your financial security and career trajectory. Beyond your salary, these agreements often address bonuses, commissions, stock options, job security, severance pay, restrictive covenants and other key provisions that can shape your future opportunities. Negotiating the right terms can be essential to protecting your interests.

At Rabner Baumgart Ben-Asher & Nirenberg, P.C., our attorneys have decades of experience representing executives, officers, and management-level employees throughout New Jersey. If you are seeking a Bergen County employment lawyer to review, negotiate, or enforce an executive compensation package, we can provide skilled and practical guidance tailored to your goals.

Why Employment Contracts Matter for Executives

Unlike many employees who work “at will,” some executives have the ability to negotiate the terms of their employment. This means your contract may determine:

• How secure your job is
• What severance pay or other benefits you receive if you are terminated without cause or resign for good reason.
• Whether and when you are eligible for bonuses, commissions, or stock options
• What limitations you may face when seeking new job opportunities in the future

Because of these high stakes, it is critical that you fully understand what is being offered—and what is missing—before signing.

Job Security and Severance Provisions

Executives often prioritize stability. A carefully drafted contract can provide:

• A guaranteed term of employment (one-year, multi-year, or renewable)
• “Just cause” protections, requiring the employer to establish valid reasons for termination
• Protection if you are forced to resign for a “good reason” caused or created by the employer
• Severance provisions or “golden parachutes” to ensure income and benefits if your employment ends

These terms protect not only your income but also your ability to plan for your family’s financial future. Our attorneys regularly negotiate severance protections that provide meaningful security.

Bonuses and Incentive Plans

Bonuses can represent a significant portion of executive compensation, but too often the terms are vague or discretionary. You should clarify:

• How the bonus is calculated (e.g., individual performance, company performance, or both)
• Whether the bonus is guaranteed or dependent on managerial discretion
• When bonuses are paid and whether they are prorated if you leave mid-year
• What happens if you resign, are terminated, or are laid off before payout

A poorly drafted bonus clause can leave you empty-handed. No matter where you work in New Jersey, a Bergen County employment lawyer at our firm can ensure these provisions are written to protect your interests.

Commissions and Sales-Based Compensation

Executives in sales-driven industries often rely on commissions. Key questions to resolve include:

• When is a commission considered “earned”? (upon sale, payment received, or another milestone)
• How long do commission rights last after your departure, including whether you are entitled to residual commissions for accounts you developed?
• What happens if your accounts are reassigned, or if another employee works on or closes the deal?

Because disputes frequently arise over commissions, it can be critical to have clear, enforceable terms in your contract.

Stock Options and Equity Compensation

Equity-based compensation, such as stock options and restricted stock units (RSUs), can be highly valuable but also complex. You should understand:

• The vesting schedule
• What happens upon termination, including the time frame to exercise stock options after leaving the company
• The impact of a merger, acquisition, or change in control
• Whether non-compete provisions are tied to equity grants

Our attorneys will explain the risks and benefits of equity packages and negotiate terms that maximize your opportunity while minimizing restrictions.

Non-Compete Agreements and Restrictive Covenants

Many executive contracts include non-compete agreements, non-solicitation agreements, or confidentiality clauses. These provisions can severely restrict your ability to work elsewhere, even in unrelated roles. The enforceability of these restrictive covenants depends on how the contract is written.

We can help you:

• Negotiate to limit the scope, duration, and geography of restrictions
• Respond to a “cease-and-desist” letter
• Challenge unreasonable non-compete clauses and otherwise defend you in court
• Ensure non-compete and non-solicitation provisions protect legitimate company interests without unnecessarily hindering your career

Why Work with a Bergen County Employment Lawyer

Employment contracts are legally binding. Once signed, they can be difficult and costly to change. Having a knowledgeable attorney on your side can ensure you do not overlook terms that could harm you later. At Rabner Baumgart Ben-Asher & Nirenberg, P.C., we bring deep experience in employment law and a proven track record of advocating for executives across industries.

Contact Rabner Baumgart Ben-Asher & Nirenberg, P.C.

If you are negotiating an executive compensation package, facing a dispute over your employment contract, or seeking advice on restrictive covenants, a Bergen County employment lawyer at Rabner Baumgart Ben-Asher & Nirenberg, P.C. can help protect your career and financial future.

Call us today at (201) 777-2250 or contact us online to schedule a confidential consultation with one of our experienced attorneys.