Your executive team is the #1 asset of your rapidly growing company. Are your executive compensation packages sufficient to retain them and keep them motivated?
Negotiating an executive compensation package with a prospective executive hire is nothing like hiring an employee. Often your prospect will have significant experience at top competitors or large Fortune 500 companies in their resume (which is why you wanted them in the first place right?) This can give them an advantage in the negotiation process especially since they’ve probably been in the negotiation process many times in their career. As a business owner, these negotiations and the final offer could have a profound effect on the future success and sellability of your company. At the same time, especially if your company is smaller, you might yourself have very limited experience in executive compensation negotiations. Don’t make the mistake of making a go at these negotiations on your own and just hoping for the best. With significant experience both on the employer and employee side of the table, I can help you with strategic and legal aspects of the negotiation process and, when negotiations have been completed, I can make sure that all the loose-ends up tied up neatly with an offer
While it usually isn’t a good idea to have much more than an offer letter when hiring most of your employees, things are much different when it comes to hiring an executive level member of your team. Here, there are so many moving parts: equity compensation, goal metrics, expectations, bonus structures, outside compensation stipulations, and more, that an employment contract is common. Writing an offer and employment contract with executive employees is something that absolutely has to be done right. Employment related issues are one of the top areas of liability for growing businesses and starting your employment relationship right with properly written offers and contracts is a great way to avoid many of these issues.
Equity and Other Consideration
Often a competitive salary isn’t going to be the only thing at play in an executive compensation plan. Be prepared to consider equity-based compensation if you want the members of your executive team to start thinking and acting like owners instead of employees.
Giving away part ownership of your company isn’t something to be undertaken without careful planning though. To use this tool successfully in an executive compensation package requires careful company structure planning, vesting schedules, properly structured equity, and impeccable company records.
I can help you make sure that your equity and other related compensation tools are built, offered, and finalized properly as part of executive compensation packages.
Ready to build your executive team? Let me help you get the executive compensation right. Schedule a complimentary consultation today to get started.