Executive compensation concerns including the failure to perform is an often complex area of law where a company or corporation’s business and human resource objectives intersect. With more than 20 years of experience advising businesses and litigating executive employment matters, Attorney William S. Heyman can strategically represent businesses or executives in disputes of this type. At the Heyman Law Office, Mr. Heyman brings with him big-law background and experience that he has synthesized with personalized service and one-on-one direct accessibility characteristic of focused, boutique practices.
Mr. Heyman has handled an array of high-stakes litigation including matters against the U.S. federal government where he secured a multimillion-dollar settlement on behalf of his client and numerous seven-figure business disputes on behalf of corporation,business owners and executives. To discuss your executive compensation matter confidentially and determine whether Mr. Heyman’s services are right for you call (410) 305-9287 or contact the firm online.
When Do Failure to Perform Issues Arise?
Failure to perform scenarios can arise for an array of reasons. Some are common and other reasons are particularly rare. However, one factor that is typically a constant is that the corporate board or other governing body and the executive are rarely in agreement that a failure perform scenario exists. While the board may claim that the executive’s conduct fell below minimum standards, the executive is likely to have a different interpretation. For scenarios where the board may claim that the executive failed to develop and implement a viable business plan or strategy, the executive is likely to have a response to this as well. Furthermore, should shareholders attempt an “excessive compensation” action against officers and directors, an understanding of the suit’s likelihood to succeed on the merits and ways to meet this challenge are necessary.
The Importance of a Clearly Drafted Employment Agreement for Employers and Executives
Many issues in the context of executive compensation and potential failure to perform claims can be averted by meticulous consideration of foreseeable and common sources of conflict combined with a conscientious drafting of the actual agreement. However, all too often terms are left overly vague and open to divergent interpretations. Compensation is one of the most obvious areas that must be addressed in an employment agreement but in many cases questions regarding annual increases to base salary, quarterly or annual bonuses, and conditions for a decrease in base compensation are left open to interpretation. Furthermore, questions of equity grants often arise in litigated matters. These disputes often include:
- Whether the equity grant is tax advantaged, restricted, or non-qualified stock options?
- Is the percentage grant on the basis of fully diluted stock or issued and outstanding stock?
- What is the applicable vesting period?
- In the event of termination without cause, does accelerated vesting apply to some or all of the grant?
Lack of clarity in an executive’s scope of employment can lead to disputes over whether the executive has fulfilled performance requirements. Furthermore, questions in this area can lead to disputes regarding the powers held by the executive including whether he or she is granted or guaranteed a seat on the Board of Directors. Benefits concerns – including healthcare, pension, 401(k), and life insurance – are also fertile grounds for dispute and litigation. The onset of a disability and subsequent action by the company can also give rise to significant disputes.
Work with a Baltimore, Maryland Business Attorney with More than 20 Years Experience
For more than 20 years Mr. Heyman has provided clear, on-point guidance to executives, corporate boards, officers and others regarding legal issues arising from disputes over executive compensation. Mr. Heyman founded the Heyman Law Office to provide a higher level of client care and lawyering that is responsive to client concerns and questions. If you or your business have concerns regarding potential failure to perform matters, call the Heyman Law Office at (410) 305-9287 to schedule a confidential consultation at the Baltimore office.