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- Because executives earn high pay and receive valuable benefits, company shareholders may push back during the hiring process.
- Common areas of dispute in executive compensation include severance agreements, restructuring protections, salary, and company equity.
- Newly hired executives need to review all compensation agreements thoroughly and understand all clauses, particularly those related to separation and when benefits fully activate.
- Employment attorneys can help newly hired executives review their onboarding documents and negotiate for fair compensation when necessary.
- Our attorneys understand vital New York employment laws and represent employees at all levels.
Starting in a new professional role is exciting, but it can also generate significant worry and anxiety, especially when you’ve accepted an executive position. The competitive nature, high pay, and unique skill set for top-level jobs create high expectations on both sides of the negotiation table.
Tensions are even higher in today’s challenging job market, where hiring announcements reached a decade low in 2024. Employers have become more cautious and reluctant to take chances on candidates, while job seekers have become more unwilling to disturb the peace. This environment has resulted in more difficult compensation and benefits negotiations.
Corporations have skilled attorneys and finance departments on their side throughout this process, and newly hired executives deserve the same. If you have been hired into a C-suite role, a New York executive compensation lawyer at Joseph & Norinsberg can protect your rights.
What Is Executive Compensation?
Executive compensation is the pay and benefits packages for individuals entering executive roles. The negotiation process for these roles is highly complex, especially considering the number of stakeholders involved. A specialized committee of board members typically makes the final decision, but investors and shareholders can push back if they believe the compensation is too high. If the compensation package is publicly accessible, lower-level employees and media outlets also can express such concerns.
As highly skilled professionals, executives have the right to stand up for themselves. Executive leaders earn their pay by making fundamental decisions about the company and its future. Those decisions drive the returns that are key to the company’s future.
If companies bend to shareholders’ criticisms, executives may earn less than they deserve. A skilled attorney can fight against that process and help you collect a fair salary and benefits.
Why Should You Trust Joseph & Norinsberg With Your Executive Compensation Case?
We are a firm of highly tenacious employment lawyers. Known for our relentless work ethic and exceptional trial skills, we care deeply about every client.
Our attorneys have over 100 years of combined experience fighting for employees’ rights and have obtained more than $200 million in settlements and verdicts. Drawing on an extensive knowledge of employment law, we focus on the details of each case and fight for the best possible results, including the following outcomes:
$1.2 Million
Settlement
For a class of construction workers who were not properly paid for overtime
$975, 000
Settlement
For 23 restaurant employees who did not receive their full wages due to their employer’s unfair time-tracking practices
$750, 000
Settlement
For 25 cleaning company employees who were underpaid because of their employer’s unethical timekeeping methods.
What Kinds of Benefits Can Executives Expect To Receive When Starting a Position?
Executive benefit packages tend to be more robust than those geared to lower and mid-level employees. Typical benefits include:
- Signing bonuses: A one-time payment for a new executive as an incentive for joining the company
- Company stock options: The right to buy shares of the company’s stock at a pre-negotiated price
- Deferred compensation: A portion of the executive’s monetary compensation that they choose to receive later, often during retirement
- Supplemental executive retirement plans, or SERPs: A specific type of deferred compensation, typically involving a life insurance policy that the company purchases and pays out on the executive’s behalf
- Higher 401(k) matches: Company-paid retirement benefits that exceed what a non-executive at that organization can receive
- Disability insurance: Income replacement if the executive is suddenly unable to work—an essential benefit for highly paid employees with significant expenses
- Paid housing: Company-provided accommodations, often for executives who need to relocate or spend significant time at another location
- Travel and transportation perks: Use of the company’s aircraft, car, and driver, with possible allowances for personal purposes
The level and type of perks available depend on the company and position. The candidate’s qualifications often play a role, as does precedence within the organization.
What Is Discussed When Negotiating Executive Compensation?
While any element in a compensation package is up for discussion, conversations tend to focus on several key elements, including:
- Severance agreements: Documents outlining the pay and benefits available to the executive when employment ends
- Pay and equity options: Salary and stock availability, including share purchase price and when the executive can exercise the option
- Termination clauses: The conditions under which the company can terminate the employee, including required notice and any required preliminary steps
- Non-compete agreements: A requirement that the executive avoid working for a competitor or starting a competing business for a set period
- Non-solicitation agreements: A clause that prevents the executive from inviting staff or customers to follow them when they leave their role at the company
Because these issues can significantly affect the executive’s and the company’s future, they often trigger pushback during negotiations. The executive may resist more restrictive terms, while shareholders may ask the company to be less permissive.
What Issues Are Common With Executive Compensation Negotiations?
Specific issues arise repeatedly in executive compensation discussions.
One frequently disputed aspect of compensation is the severance package, for which executives and organizations often have different expectations.
For instance, executives may expect ongoing health care benefits, retirement contributions, and unexercised stock options. These benefits are essential components of a fair severance agreement, particularly in a challenging job market where executives may struggle to find another position.
Hidden Clauses and Essential Contract Elements
Some companies may try to avoid pushback by hiding less attractive clauses in the employment contract. For example, some agreements allow the company to limit the executive’s equity or pay if they don’t meet specific performance requirements.
These limitations may be referenced in subtle ways. Executives should read compensation documents thoroughly and look for language relating to pay forfeiture conditions or changes to vesting schedules.
Reviewing the contract also enables newly hired executives to identify beneficial provisions, including those that protect them in case of a merger, acquisition, restructuring, or change in control. It’s essential to negotiate a protection plan that safeguards you in the event of such .
Non-disparagement clauses are crucial for similar reasons. These agreements prohibit the employer and the executive from making negative comments about each other. Disparagement can devastate the executive’s career prospects.
Why Do You Need a New York Executive Compensation Lawyer?
While it’s possible to negotiate a contract without an attorney, an experienced employment lawyer can improve your chances of a favorable outcome. Our attorneys can do the following for you:
- Review contracts and agreements: We read through documents before you sign them, reducing your risk of agreeing to something unfavorable.
- Explain complex compensation structures: We can ensure you understand everything in your pay package.
- Handle high-stakes negotiations and disputes: We represent you in negotiations to protect your financial interests.
Having an experienced executive compensation lawyer speak for you can boost your professional reputation, particularly in the competitive New York job market. Our five-star rating and dedication to client satisfaction precede us, as our client testimonials reveal:
Contact Joseph & Norinsberg for Your Employment Law Case
If you were recently hired into an executive role or are renegotiating your contract, our employment contract lawyers can help. We understand the nuances of executive compensation agreements and will advocate for the pay and benefits you have earned through years of hard work.
Contact us online or call 212-227-5700 today for a free consultation.
An extensive track record of success has resulted in Jon becoming one of the top civil rights litigators in New York City. A true trial lawyer, he is not intimidated by the intense challenges complex civil rights and constitutional law cases present.
- New York Age Discrimination Lawyer
- New York Disability Discrimination Lawyer
- New York Gender Discrimination Lawyer
- New York Pregnancy Discrimination Lawyer
- New York Race Discrimination Lawyer
- New York LGBTQ Employment Discrimination Lawyer
- New York Weight Discrimination Lawyer
- New York Religious Discrimination Lawyer
Increased client’s severance for being discriminated against for their disability.
Defended 12 individuals facing discrimination and retaliation based on race and gender in the workplace.
Race discrimination case against a luxury brand in the fashion industry (confidential).
