Breach of executive contract
The departure of an executive can occur at the request of the company, of the executive in agreement with his Chairman or Board of directors, or on his own initiative.
In all cases, it is preferable to anticipate and prepare carefully the breach of contract, in order to optimize the leaving conditions, and to transform this delicate and often destabilizing situation into a new opportunity : keeping self-confidence, managing time, mastering the conflict and preserving a confidential character, obtaining the adequate golden parachute, optimizing the package from the tax and social point of view, succeeding in the internal and external communication, and preparing the personal and professional transition.
We can intervene in these various circumstances, including when the breach of contract is at the executive's initiative only.
It is a global intervention since it contains : the best package by considering all components of the compensation package (basic remuneration, bonus, LTI, housing, company car, protection program, pension and insurance plans, benefits...), the tax and social optimization, entitlements regarding unemployment benefits or pension plans, mediation and conclusion of a deal, legal and formal issues.
Our intervention proceeds in three phases :
It consists in identifying the executive and company entitlements, the possible damage, the expectations of the executive as well as the resources he will get when leaving the company. This diagnosis proceeds in several stages :
- A first meeting to recap the situation of the executive and his expectations, the company and its culture ;
- The audit of the executive's entitlements towards the company, the unemployment benefits and / or pension plans (if the executive is about to retire), by optimizing as of this stage the tax and social aspects ;
- The computation of the unemployment benefits in comparison with the previous remuneration ;
- The market's practices regarding the breach of contract of executives ;
- The analysis of the consequences of the breach of contract on all components of the executive's compensation package : basic remuneration and bonus, notice period, LTI, housing, company car, protection program, pension and insurance plans, non competition clause, parachute, outplacement, benefits...;
- The validation.
The goal is to investigate the various scenarios, to identify the objectives, to prepare and hold the discussions, while proceeding with method. The steps are as follows ;
- Identification of parties interest ;
- Evaluation of risks and opportunities for the executive and the company ;
- Analysis of options ;
- Clarification of objectives and costs ;
- Definition of strategy and roles ;
- Dialogue facilitation between parties.
The objective is to conclude a deal as soon as possible but without hurry, then to formalize the terms of the agreement by making sure that procedures and documents correspond to the agreed commitments, and by covering all forms of exposure to potential risks.
Care is taken as much as possible to facilitate the transition within the company, and to communicate in a positive way on the causes of termination and future professional prospects.
Individual career transition
Within the framework of partnership, we can facilitate a tailor made career transition :
- Individual assessment ;
- Development of an individual project ;
- Personal guidance in implementation.
Our intervention is global and relevant : global because we intervene on all aspects concerning the breach of contract ; relevant because of our understanding of business.
It is specifically adapted : our approach consists of a step by step guidance of the executive in the various stages ; it is supported by methodologies (negotiation techniques, shared references) and preparation exercises (behaviour advice, role plays).
It integrates at the earliest stage the taking into account of the later professional step : individual development needs, various assistance depending on country regulations, possible combinations of unemployment benefits and a new job, outplacement or support to business creation.
Perfectly confidential, it avoids any long, indiscreet and sometimes expensive litigation procedures.
We propose an attractive formula, since expressed as a percentage of the additional package obtained by our intervention.
An upfront charge corresponding to the file opening is due.
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