Understanding Executive Compensation in New York
When reviewing executive compensation packages, it is important to have an experienced executive compensation attorney review your documentation. Due to the current economic crisis in the U.S., these compensation packages are being scrutinized now more than ever and may even be subject to federal government approval.
The Executive Compensation Act of 1997 (HR 1257) amended the Securities Exchange Act of 1934. The HR 1257 allows shareholders to have an advisory vote on executive compensation. However, there have been many amendments to HR 1257, and as part of the Economic Stimulus package, Congress is working to adopt new regulations regarding executive compensation.
When you are interviewing for a new executive position, you should have a list of what gives unique value to your role in the company. Research the market value of your position, and the benefits common in executive compensation packages. Executive benefits can include sign-on bonuses, annual raises (which may include a minimum amount), supplemental executive medical and life insurance, retirement plan, club memberships, legal planning services, college tuition for your children and termination provisions (sometimes referred to as a “golden parachute).
Executive negotiations can be delicate and may require legal review. By hiring an experienced executive compensation law firm to review your contract, you can ensure you are compliant with any industry, state and federal laws and regulations.
This information has been provided by the New York employment law attorneys of The Watanabe Law Firm at 212-486-7005.