Always get a legal review of a draft withdrawal contract before executing the agreement or asking the outgoing CEO to sign the release terms. Both parties, not just the non-legal organization, should have the agreement reviewed definitively. The executive may also be concerned about the protection of its reputation, a subject that should also be addressed in the severance agreement. This could be included in a mutual non-disparage clause that protects both the company as planned and the outgoing executive. As noted in the previous description of the four common reasons for negotiating a withdrawal agreement, there is no doubt that many boards and executives value these agreements as important elements for successful CEO transitions. However, there are some considerations worth increasing the benefits and positive aspects of a withdrawal agreement, while reducing potential negatives. In this section, we will discuss some of the important issues that should be considered before a withdrawal agreement is reached. After presenting each issue, we offer a series of key questions and tips for thinking. Here are the presentation situations that, based on the experience of exit agreements, are the most frequent: what is the likelihood that a change in capacity could affect the non-profit organization`s ability to provide the benefits, benefits or other resources or other assistance promised in the agreement? To properly consider the financial capacity issues related to the withdrawal agreement, ask the following question: carefully document the measures taken to determine the amount of exit pay to be paid and assess its adequacy, including the use of surveys, compensation studies or other compensation data received and used.
If your not-for-profit organization has not recently acquired a salary study or conducted a compensation review, you should consider it before entering into a withdrawal agreement. This measure confirms the relevance of the exit allowance by confirming it with comparable market data. Given that the benefits of severance pay can be significant in severance agreements, it is understandable that lengthy negotiations, or even legal disputes, can arise when an employee is dismissed for other reasons. And there is no point in there being a defined legal definition, which is precisely unethical, immoral or contrary to the welfare of the employer. It is also possible to enter into a severance contract for executives when an employee is recruited for the first time. In this case, the employee agrees to take the job and work for the employer in exchange for generous severance pay at the end of his relationship. So what probably happened was that when O`Reilly and Fox News renegotiated their contract, fox news asked for the opportunity to fire O`Reilly if the sexual harassment accusations were ever made public. In exchange for this power, O`Reilly insisted on both a large package of severance pay and the exclusion of sexual harassment from the “cause for cause” justifications in his severance agreement.