Charles Elson, a professor of corporate governance at Stetson University said companies should be looking for a contract negotiated by independent directors. In prior years, stock options had been more common. But while compensation grabs shareholder attention, lawyers say the most important section is the one dealing with termination. That's the only paragraph open to interpretation when a board squeezes out a top executive or asks him to resign, duFresne said. Often, it's the difference between millions of dollars and no severence at all.
Companies push for noncompete clauses in employment contracts.
Executives push for provisions that address a change in control of the company, ensuring their job security and vesting of stock options. Then there are perks. The Miami Herald. Republished here with permission from The Miami Herald. No further republication or redistribution is permitted without the written approval of The Miami Herald.