Executive roles present substantial opportunities and significant risks. Upon entering a senior position, your contract determines your responsibilities, severance, bonuses, equity rights, and post-employment activities. Consulting an employment lawyer at Cassady Law enables you to fully understand your obligations and safeguards your professional interests.
Your Compensation Package
At an executive level, your pay package often includes:
- Base Salary
- Annual or performance-based bonuses
- Long-term incentives or equity opportunities
- Allowances and enhanced benefits
Many people overlook or misunderstand employment contracts because they do not provide clear examples, such as what happens if you are let go without cause. For example, your contract should specify whether your current-year bonus will be paid and whether you retain equity awards, such as stock options, that have not yet vested. If the agreement is vague, BC courts assume that bonuses and some equity are part of the overall severance compensation. Separate plan documents may include rules, such as cutting off bonus rights upon termination, unless your main contract states otherwise.
Navigating a new executive contract can be complex. The Cassady Law employment team will guide you through the entire documentation, including offer letters, plan documents, and policies, providing comprehensive explanations tailored to your advantage.
Termination and Severance Considerations
For executives, the termination section is the most important part of the contract. It sets out what you receive if the company ends the relationship without cause. In BC, if this clause is not written properly, a court may ignore it and instead give you ”reasonable notice’ under the common law; often a year or more of total compensation for senior roles. To avoid problems, a termination clause should:
- clearly respect the BC minimum standards;
- mention ending employment with proper notice;
- include bonuses, equity and benefits along with base salary; and
- be specific about the definitions of “for cause.”
These details can mean the difference between a few months’ pay and a significant severance. Cassady Law can review the strength of your contracts and help negotiate better terms.
Your Duties During and After Employment
Executives are generally expected to meet higher standards than other employees, irrespective of whether the contract specifically references fiduciary duties. This distinction affects how confidential information is handled, the approach to competitive activities, and the management of relationships with clients or colleagues post-employment.
Non-competition clauses: limits on where or for whom you can work.
Non-solicitation clauses: limits on contacting clients or employees.
In BC, non-compete clauses are rarely enforced unless narrow, while non-solicitation clauses are more common but must be reasonable. Our team helps clarify enforceable, overbroad, or negotiable restrictions.
Get Advice Before You Sign
Executive offers are designed primarily to safeguard the employer. Although they may appear straightforward, the legal ramifications often differ from initial impressions. At this level, employers anticipate negotiation, and thoughtful questioning demonstrates your professionalism and expertise.
Retaining an employment lawyer at Cassady Law ensures your contract aligns with your best interests. The Cassady Law team will:
- Translate legal jargon into clear, practical terms.
- Identify clauses that are risky, unclear or out of step.
- Suggest specific changes to strengthen your severance, bonuses and equity protection.
If you’re considering an executive role or being asked to update your existing contract, it is worth getting proper legal advice before you sign anything. Contact Cassady Law for a brief review of these contracts now to help prevent long-term issues.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. The information provided herein may not reflect the most current legal developments. For personalized legal business advice, please consult with a lawyer at Cassady Law.