Director & Executive Severance

The complexity and sensitivity that typically surrounds a senior level exit demands specialist advice to supplement any existing internal guidance on handling employee exits.

We support clients from the outset, considering legal risk at every stage of the exit process. We advise a strategic approach to executive terminations including:

• Reviewing employment documents and contracts regularly to ensure they are suitable for exit scenarios such as garden leave provisions or restrictive covenants.
• Guidance prior to any discussions or dialogue with an exiting executive including appropriate use of protected conversations.
• Coaching on how to approach discussions with the exiting employee in what can become challenging and emotionally charged exchanges.
• Setting the right level of offer, allowing for negotiation and taking account of other benefits which can form part of the settlement such as retaining their mobile phone number, covering legal costs and agreeing wording for external and internal communications and references relating to the exit.

We start by considering the underlying reasons for termination, as this will influence the options for lawful termination of an executive’s contract. At executive level, grounds can range from disagreements over company strategy to allegations or complaints of serious misconduct, differences in personality at board level or capability and performance issues.

Contentious exits in particular can present further challenges where the exiting employee holds leverage within the negotiation, for example where they hold director status and are required to formally resign their position.