Tracey S. Bernstein, Esq

EXECUTIVE CONTRACTS: SEVERANCE UPON EXPIRATION

Executives who are offered contracts with a specific term should ask that any severance payment also apply upon the expiration of the contract term in addition to any termination by the employer prior to the end of the term.

The rationale for this request is that it very difficult, even unlikely, for an executive, particularly a senior or C-level executive, to find the time look for a new position while also fulfilling their considerable employment obligations prior to the expiration of the term.  As such, executives will still be faced with the same lengthy job search as if they were terminated prior to expiration; except without any cushion.