In an uncertain economy, a little peace of mind can go a long way with your executives and employees. Employment agreements and severance agreements can help. Our HR consultants will offer recommendations on how to provide the security your executives and employees need.

Employment Agreements

An employment agreement provides your employees with a contractual basis for compensation and benefits, reassuring them that their compensation levels will remain as stipulated in the agreement. These often include:

  • Base salary
  • Annual incentive target percentage
  • Annual long-term incentive awards
  • Any inducement incentives (cash or equity)
  • Relocation terms
  • Executive perquisites
  • Terms for release (severance) from employment

Employment agreements are typically addressed at hire and sometimes revised at renewal, which varies from every one to five years.

Severance Agreements

When an employee is asked to leave a company or the company has a change of control, a severance agreement will provide them with income for a set time period. These agreements typically include:

  • Base salary
  • Annual incentive
  • Treatment of long-term incentive awards (e.g., acceleration of vesting, continuation of exercisability of options, etc.)
  • Health and welfare benefits
  • Treatment of excise taxes

Severance agreements should be reviewed every one to three years.

Call (877) 521-4011 to talk to a Frost HR Consultant or request a call or email. ​

Talk to a


(877) 521-4011

Or request a call or email

We Can Help When:


You need guidance on what other companies are doing for their executives.

Your company needs solutions to avoid excise tax gross ups.
You need information on provisions that will get a negative vote recommendation for the Say on Pay proposal from proxy advisors.

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