Some firms also are adding confidentiality clauses which restrict executives from disclosing confidential company information during or after their employment. In addition, some contracts require employment-related disputes to be settled by arbitration or mediation. However, the courts are looking at whether it's legal to require people to waive their right to go to court, she adds. At the executive level, negotiations often move swiftly because candidates and search committees already have a sense of whether they can agree. Negotiations that drag on often go downhill, says Mr. Boone.
Recruiters sometimes act as middlemen in negotiations.
In other cases, particularly at the CEO level, lawyers become involved. Top employment attorneys maintain databases to track what executives in particular industries earn and what types of bonuses and perks they receive. They know what their clients are worth and are able to negotiate competitive packages for them, adds Mr. Tauber. Executives who are directly involved in negotiations must ask for provisions in a way that doesn't irritate the search committee. They must know the contractual norms for executives in their industry and have a sense of how much the company wants them, says Mr. Boone, who has seen employers rescind offers to executives who were perceived as too demanding.