Both CEOs and boards should have protection, flexibility in notice clause
May 25, 2018
By William Ehart
“There are two times when you look at a contract,” says attorney David Goch, partner at Webster, Chamberlain & Bean. “When you sign it, and when you want out of it. “That being the case, the most important provision is termination,” he says.
But termination is a two-way street.
A key part of any executive employment contract is the provision relating to notice of departure, and first-time CEOs in particular should be aware of its significance and the fact that it is subject to negotiation.
“I would never sign a contract with no notice clause,” said Peter O’Neil, CEO of the $28 million-revenue ASIS International, a professional society for people in the security field. “You have to understand the culture of your organization and your members when you negotiate a contract and try to look at things from their perspective as well as your own.”