Executives and directors in Great Britain face particular issues when negotiating settlement agreements.
- Complex pay structures
- Senior packages often include:
- Bonuses and commission
- Long‑term incentive plans (LTIPs)
- Share options or RSUs
- Car allowances, pensions and benefits
The agreement must spell out what happens to each element: vesting, lapsing, good‑leaver status and any discretion to pay.
Reputational and regulatory concerns
For high‑profile roles, wording around:
- Reasons for leaving
- Public announcements
- Internal communications
- References
can materially impact future opportunities. Regulatory notifications may also be required in certain sectors.
Restrictive covenants
Non‑compete, non‑solicitation and confidentiality provisions are often central. Executives should ensure:
- Duration and geographic scope are reasonable
- Restrictions are no wider than necessary
- Any waivers or limitations are properly recorded
- Board positions and directorships
Settlement agreements should deal with:
- Resignation from directorships and offices
- Company law filings
- Shareholdings and shareholder agreements
Because sums at stake are larger, specialist executive settlement agreement advice is essential to secure a fair exit and protect future career prospects.
