FAQs

1. What is a strategic exit for an executive or senior employee?

   When an executive, senior employee or director leaves a business, it is often best for all concerned that their exit is smooth and, wherever possible, amicable.

   This can mean balancing a number of factors, for both the employee and the employer, including the reputation and financial impact on each party and the next phase in the career of the individual and the development of the business. As a result, this kind of exit can often involve much negotiation and compromise.

2. Will I be released from my post-termination restrictions?

   Unsurprisingly, employment contracts for executives, senior employees and directors typically include post-termination restrictions which purport to limit the activities of the individual after their employment ends.

   Negotiating a strategic exit will therefore often include negotiations around releasing the individual from these restrictions, or reducing their length of scope.

3. What happens if I have shares in my employer’s business?

   It is vital that your shares in your employer’s business are covered in any negotiations around your strategic exit. Depending on the rules of the relevant share scheme, this may include ensuring you receive the payments you are entitled to if you are required to return the shares, or it may include ensuring measures are put in place to protect the value of your shares in the event you are holding onto them despite the end of your employment.

4. How can I protect my reputation?

   An agreement between the parties to protect their respective reputations is common, and will often be included in the terms of a formal Settlement Agreement. Typical clauses may include a mutual agreement that the parties will not make any critical or derogatory comments about each other, nor will they disclose details of how their working relationship came to an end.