Workplace Legal represents companies, CEOs, CFOs, COO’s, and other high-level executives and professionals in complex employment termination negotiations.
Identifying Leverage
We start by analyzing the factual circumstances surrounding the termination and the legal claims/defenses that could be in play. Then, we identify the points of leverage that can be exploited in the negotiation.
Typically, leverage comes from either legal leverage (i.e., does one party have strong, provable claims that the other does not want to have to deal with in litigation), business/profit leverage (i.e., does one party see a way to do business with and make money from the other in the future), and affect leverage (i.e., does one party have strong feelings for the other, either good or bad, that influence what that party is willing to agree to in the negotiations).
In most executive terminations, at least one of these leverage points is present. And other leverage points might also exist. A thorough understanding and deployment of leverage is critical to a successful severance negotiation.
Understanding the Other Side’s Position
So, too, is an awareness of the real-world business issues that are in play. The executive wants a severance payment, of course. But things other than money might be even more important – we discuss what those things might be with our executive-client, and we devise a negotiation strategy aimed at getting the entire package for the client.
Similarly, the employer often wants things from the departing executive – we discuss what those things might be with our employer-client, and we devise a negotiation strategy for obtaining them from the departing executive.
We work with clients to explore all of these goals and then to deploy the leverage we have to try to achieve the best severance deal for our client.
The Importance of Finesse
Finesse is critical in executive severance negotiations because there is a lot at stake. There are often important business relationships and reputations in play that, if damaged, could lead to a breakdown in the negotiations or to litigation.
At Workplace Legal, we are keenly aware of these real-world business issues, and we work hard to advocate for you while, at the same time, preserving your reputation and future relationships. We advise you continually throughout the negotiation process so you always know your next best alternative and can make an informed decision on when to hold firm, when to compromise, and – when all else fails – when to litigate.
