Navigating Executive Severance Agreements in Ohio: What Every Executive Needs to Know
When it comes to executive severance agreements, understanding every clause and provision is crucial for executives in Columbus, Ohio. Severance agreements often contain restrictive covenants, non-compete clauses, and conditions that can impact your future employment options. Before signing any agreement, consulting an experienced Ohio employment lawyer can be invaluable to ensure you are protected and fully compensated for your years of service. Let’s dive into what executives need to know when reviewing a severance package.
Why It’s Essential to Review Your Severance Package Carefully
An executive severance agreement is more than just a payout — it’s a legally binding document that can affect your career, compensation, and future rights. Many severance packages address bonuses, long-term incentives, and stock options. However, these agreements can also include conditions that restrict your professional activities, such as non-compete and non-solicitation clauses. Once signed, most agreements cannot be reversed, so thorough review with a qualified lawyer is essential to ensure your best interests are protected.
Key Considerations in Executive Severance Agreements
1. Compensation and Benefits Beyond Base Salary:
An effective severance package should cover more than your final paycheck. Look for details on bonus payments, equity awards, RSUs (Restricted Stock Units), and any other incentive compensation.
2. Restrictive Covenants and Non-Competes:
Many agreements include restrictions that could impact your career, such as clauses preventing you from working with competitors. It’s critical to evaluate the scope of these restrictions to avoid limitations on future opportunities.
3. Legal Rights and Waivers:
If you’re over 40, you are protected by the Older Workers Benefit Protection Act (OWBPA), which requires additional protections when signing a severance agreement. You have 21 days to review the severance offer (or 45 days if part of a group separation) and 7 days post-signing to revoke your agreement. Knowing your rights helps you negotiate from a stronger position.
How an Ohio Severance Lawyer Can Help
A skilled severance attorney can help you negotiate better terms by evaluating your unique circumstances, such as the reason for separation and the compensation owed. An experienced lawyer will identify any leverage you have and negotiate for additional benefits or higher payouts. If you feel rushed to sign, remember that taking the time to consult a lawyer can save you from unforeseen consequences.
FAQs About Executive Severance Agreements
How is severance “consideration” defined?
In severance agreements, “consideration” refers to compensation beyond your standard pay, like additional payments or extended benefits. This is usually offered in exchange for your agreement not to sue the company for any potential claims.
Can I negotiate my severance package?
Yes! A seasoned severance lawyer can identify areas of improvement and negotiate better terms. Many executives receive an initial offer, but you can work to increase the compensation and reduce restrictive clauses.
What if I refuse to sign the severance agreement?
Refusing a severance package is an option if the terms aren’t favorable. An attorney can help assess the risks and potential benefits of declining.
Contact Mansell Law for Expert Severance Review in Columbus, Ohio
If you’re facing an executive severance agreement, don’t go it alone. Mansell Law’s severance review attorneys are here to protect your rights and negotiate the best possible outcome for your future. With years of experience in reviewing and negotiating severance packages, our team is ready to assist you through this critical career transition.
Contact us today at (614) 610–4134 for a consultation.
https://ohio-employmentlawyer.com/contact-us/
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