Thursday, October 13, 2016

Employment Agreements (Including Severance, Parachute, Clawback, Noncompete and §409A Issues)

See "Employment Agreements (Including Severance, Parachute, Clawback, Noncompete and §409A Issues)" by Charles C. Shulman, at Tax Management Compensation Planning Journal 9-2-2016
Employment agreements, which are very common for executives and senior management, raise a number of issues relating to terms of employment, severance on termination, change in control, excess parachute tax under Internal Revenue Code §280G, noncompete provisions, clawback provisions, SEC disclosure requirements, and restrictions on nonqualified deferred compensation under §409A.
The terms of employment agreements and severance arrangements are of particular relevance in corporate transactions. Executives may be terminated as a result of a transaction, and the general severance provisions in the employment agreements may be triggered.
Severance provisions are often triggered on termination of employment only if there is also a change in control of the employer, or the amount of severance may be more generous if the termination occurs after a change in control. Some agreements may allow an employee to quit for any reason and still receive severance, if the quitting is in connection with a change in control. Employment and change in control agreements often provide that options will vest on a change in control typically even without a termination of employment. 


  1. This is just the information I am finding everywhere. Thanks for your blog, I just subscribe your blog. This is a nice blog..
    pre employment check

  2. Great blog. An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. If you are looking for professional Business Recovery Specialists, visit

  3. informative post! I really like and appreciate your work, thank you for sharing such a useful facts and information about Employement law strategies, keep updating the blog, hear i prefer some more information about jobs for your career hr jobs in hyderabad .

  4. One such thing obviously, would be employment issues, or even business issues expecting that they include legitimate issues.

  5. These rights incorporate rights as a man, worker and your rights to protection. Kurzfeld

  6. Ahh! Finally, I met a great criminal lawyer, David Genis, online. I am a big admirer of you. I hope to meet you personally one day. David Genis