Good Judgment. Wise Counsel. Aggressive Representation.

Executive Severance, Vested Options and Shares

by | Sep 5, 2023 | Employment Law |

Long term incentive compensation sometimes takes the form of phantom shares; other times options and other times simple awards of shares. All involve getting the value of a piece of equity.

There is always a vesting schedule and the executive facing a termination almost always gets to keep vested options and shares.

If the executive works for a privately held company that is likely to be sold, sometimes she or he is pushed out before the next round or “tranche” vests.

We have been successful at negotiating for obtaining invested shares and for obtaining the right not to sell immediately at the current lower fair market value.  That way our client gets the benefit of the rise in value that comes with the company sale.

We have sued in Michigan and Ohio and Delaware courts when necessary.  We advise about non-compete and trade secrets clauses.

We fight whether the termination is “for cause”.

There are many issues to consider to obtain leverage for our client in the negotiation and to maximize opportunity for our client’s career, and we have decades of experience that help us assist.

For more information read: What You Need to Know About Severance Packages.