Tips for Negotiating Employment Agreements

Executive leadership is a huge responsibility for any individual that is in charge of a company or critical component of a company. Most executives will have to sign a contractual agreement for employment that protects the interest of both parties. However, people need to understand that just because a company offers you their contract and encourages you to sign it without any modifications is preposterous. Any company agreement without modifications is going to shift most of the risk onto the employee being offered the job. That's where you need legal advice as well as making a business decision on the risks by yourself. Don't just allow a lawyers perspective stop you from signing an employment agreement. Take their advice into consideration, but you have to make the final decision in negotiating an employment agreement.

You should negotiate the terms and conditions of any contractual agreement with any organization. Salary as well as bonuses and other fringe benefits should be negotiated and based on performance metrics. Always negotiate the salary and the benefits of any job. The company shouldn't have to pay you if you don't perform up to standards established within the contract. The term of the agreement should be spelled out along with the termination clauses. Pay particular attention to termination clauses because you don't want a clause that allows the company to terminate you without cause. Try to negotiate the term of a contract to an initial term between 5 to 7 years or longer if the company is willing.

Make sure you have your core duties and responsibilities spelled out in the employment agreement. Don't assume that you know everything the company expects from you. The contact clause in employment agreement is the indemnification clause. You need to negotiate this because more than likely the company's agreement states that you must be responsible for every known or unknown action that happens while you're in charge. This leaves you open to unlimited liability for actions of yourself and those around you as well as companies that may come to the business. Try to negotiate the indemnification clause to just your known actions and nobody else's. Don't leave yourself open to lawsuits that you have no knowledge of.

Any employment agreements you receive negotiate the terms and conditions. Having a sound contractual agreement protects you and the company. Take the advice of lawyers, but you make the final decision if you're willing to accept the risk if the company will not agree to a change. Remember, both you and the company can just walk away if either feels that no contractual agreement can be reached.

During any contract negotiation talks always mention what skills and abilities you will bring to the organization. Be realistic and don't state that you can do everything and more. Once you get an employment agreement signed and you start work then it's time to produce results.