Employment Agreement for Senior Employee

Under an employment agreement for a senior employee, a company hires an employee with top level responsibilities. These can range from the general management of the company to heading one of its division. 

Besides the basis salary, the remuneration package often includes a performance-based salary and/or the participation in a long term incentive plan, typically through the grant of options or shares. The employer will strive to retain its senior executive, while it also wants to make sure that crucial know-how and business information will not be shared with the competition in case of the executive’s departure. 

When drafting the employment agreement, the employer must thus find the right balance between providing an attractive package to its executive and protecting its business beyond the end of the employment relationship, for example through non-compete/non-solicit restrictions and confidentiality obligations.