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When you know it’s time to go, when should you have to say so?

Both CEOs and boards should have protection, flexibility in notice clause

Contract

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.”