The fact is that most contract features could as easily appear in other documents, such as in a formal engagement letter sent to the executive or in the association's bylaws. They often do, whether or not the executive has a written contract. Therefore, it is not an exaggeration to say that the most important elements of association executive employment contracts center around the termination provisions and are the main reason for the existence of contracts. While the hiring of an association executive occurs in a climate of mutual trust, cooperation, and the anticipation of a positive relationship, termination often creates a situation that is at best neutral and sometimes hostile. Both parties, then, need to pay close attention to termination provisions when negotiating the agreement, ensuring that the rights and obligations of both parties are clearly defined in writing.
Specific termination features Four subjects generally are addressed in termination clauses.
This circumstance deservedly tends to get the most attention. While the association wants to reserve the right to change staff leadership, to be fair to the executive, there is often a relatively extensive notice period to provide a smooth transition and a chance for the executive to prepare for alternative employment. Usually the right to replace executives carries a price for the association in the form of severance pay. The amount is subject to negotiation and is often stated as a multiple of monthly compensation. The agreement should make clear whether benefits are to be included in the calculations.