Change Of Control Retention Agreement
Termination agreements provide for payments to managers in the event of voluntary or involuntary dismissal and can play a constructive role in the recruitment and hiring of key personnel. Severance pay agreements are a way to reduce the risk that a new manager takes when leaving other job opportunities and are therefore often included in agreements for executives recruited from outside the company to encourage them to leave a former employer if the new agreement becomes unfortunate. Severance pay for long-term senior managers can be geared to protect the manager`s income, thereby maximising ties and protecting the company through anti-competitive and “good reason” provisions that ensure that a severance pay agreement does not become an incentive to cease operations. The following language is an example of a double trigger change in the command: the “double trigger” is more frequent and favors the company. This trigger is subject to termination by the executive, without reason or rightly, and to a generally defined payment period of one year.. . . .