Executive Compensation & Employment Agreements
SWB represents both employers and highly compensated employees in Pennsylvania and New Jersey in designing, drafting and negotiating executive compensation arrangements, including:
- non-qualified deferred compensation agreements,
- ERISA top-hat plans,
- bonus plans,
- stock option plans,
- rabbi trusts,
- severance agreements or plans, and
- other compensation agreements or plans.
We have a depth of knowledge regarding the various layers of regulations governing executive compensation, including Section 409A of the Internal Revenue Code, Section 457 of the Internal Revenue Code, and ERISA. We have experience in drafting, reviewing and analyzing such plans, and identifying compliance issues within such plans.
Our advice and assistance includes on-going compliance monitoring, voluntary compliance correction of identified issues, and representing employers in audits or investigations by the Department of Labor or IRS with respect to such executive compensation arrangements.
SWB also provide advice to both employers and highly compensated employees in Pennsylvania and New Jersey in negotiating and drafting employment agreements, including advice regarding:
- at-will versus contractual employment relationships,
- termination of employment relationships for cause,
- severance provisions,
- enforceability of restrictive covenants such as non-competition, or non-solicitation provisions under Pennsylvania or New Jersey law,
- employee benefits such as 401(k),
- health insurance,
- COBRA requirements,
- employee stock options or other partial employee ownership rights or arrangements,
- confidentiality restrictions,
- professional liability insurance requirements,
- indemnification provisions, and
- arbitration requirements.
SWB has successfully assisted many highly compensated employees in Pennsylvania and New Jersey navigate leaving one job while simultaneously negotiating an employment agreement and compensation package from a new employer, which may include advising the employee on the obligations the employee may have to their former employer, negotiating a severance or buy-out of the employee, and negotiating on the employee’s behalf with the new employer.
SWB has also successfully represented employers as they attempt to recruit and retain highly compensated key employees and negotiate smooth exits and transitions of key employees with minimal impact to the employer. SWB can also assist employers with respect to the executive compensation aspects of a merger or acquisition, providing advice to employers to protect their existing employees. We have successfully represented employers against litigation brough by former employees in federal and state courts in Pennsylvania and New Jersey regarding compensation, severance, buy-outs, or other termination issues.