Armstrong & Associates Employment Law Firm

2 clauses to look for in executive contracts

The demand for leadership skills and technical ability is high. The demand is even higher if you have both of those things in combination. Still, that does not mean that every deal you get from headhunters — even from promising companies — is a good one.

Some organizations strategize with both positive and negative motivators in their contract policies. Some are not as obvious as you might think. There are two major clauses to be aware of.

1. Non-compete

Non-competition clauses in leadership contracts are standard operating procedure these days. However, there is a large body of law that influences how courts interpret these particular terms. Things might not be as clear-cut as your prospective (or current) employer might like you to believe.

One of the most contentious ideas here is that your noncompete clause is must be reasonable. If it seems like your employer is overly restrictive, that could indicate both a current operational concern and a risk for future conflict.

2. Non-disclosure

The other major sticking point in professional contracts is the non-disclosure agreement. This might go along with your competition clause, or it might be a separate section. Generally speaking, it would provide terms under which you could not disclose information pursuant to the organization’s non-public activities.

There are sometimes several issues with these types of clauses. Depending on your field, you might also have to consider multi-lateral NDAs when signing a new executive contract, agreements that have a highly complex risk profile.

Are you sizing up a new opportunity? There are plenty of things to look for, and contracts are full of legal language. You might benefit from committing some serious time to understanding what it all means, the risks — and, of course, whether any of the terms are enforceable.


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