05 Jun Executive Compensation Agreement Sample

When it comes to executive compensation, it’s important to have a clear and well-defined agreement in place. An executive compensation agreement is a document that outlines the terms and conditions of an executive’s compensation package, including salary, bonuses, stock options, and other benefits.

If you’re in the process of drafting an executive compensation agreement, it can be helpful to have a sample agreement to reference. While every agreement will be unique based on the specific needs of the company and the executive in question, there are some common elements that you’ll likely want to include.

Here’s an executive compensation agreement sample to use as a starting point:

Executive Compensation Agreement

This executive compensation agreement (“Agreement”) is made as of [date] between [company name] (“Company”) and [executive name] (“Executive”).

1. Base Salary

Executive shall receive an annual base salary of [salary amount], payable in accordance with the Company’s regular payroll schedule.

2. Bonus

Executive shall be eligible to receive an annual bonus of [bonus amount], subject to performance metrics and the discretion of the Board of Directors.

3. Equity Awards

Executive shall be eligible to receive equity awards, such as stock options or restricted stock units, subject to the Company’s equity incentive plan and the discretion of the Board of Directors.

4. Benefits

Executive shall be entitled to participate in the Company’s benefits programs, including health insurance, retirement plan, and other fringe benefits.

5. Termination

If Executive’s employment is terminated for any reason other than for cause, Executive shall be entitled to [severance pay or benefits]. If Executive is terminated for cause, no such severance or benefits shall be payable.

6. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [state or country], without giving effect to its conflicts of laws principles.

7. Entire Agreement

This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, and supersedes all previous negotiations, understandings and agreements between the parties.

8. Amendments and Waivers

This Agreement may be amended or modified only by a written instrument executed by both parties. The failure of either party at any time to require performance by the other party of any provision hereof shall not affect the right of such party to require performance of that provision at any time thereafter.

By signing below, the parties acknowledge their agreement to the terms and conditions set forth above.

[signature lines for Company and Executive]

While this executive compensation agreement sample is a good starting point, it’s important to tailor your agreement to your specific situation. Be sure to consult with an attorney and other experts to ensure that you are creating a comprehensive agreement that meets your needs and protects your interests.