Job Offer Letter for an Executive
Executive Job Offer Letter
The following job offer letter is customized for the high-level director or executive. Executive contracts are often far more lengthy than those of the average employee as the agreements reached can cover everything from compensation, moving expenses, and signing bonuses to millions of dollars in severance packages and stock options.
Executive pay can range from approximately $100,000 to millions of dollars. Frequently, an executive who has verbally agreed to a job offer hires an attorney who prepares the paperwork. In these instances, the executive contract can be 30-100 pages in length and define every possible condition of employment.
In other instances, the employer prepares their standard executive employee contract. During negotiations, the senior employee then takes this employer-offered contract to her attorney who adds clauses to protect her interests. In the end, the employer and employee agree to the contract terms no matter who initiated the contract's first draft.
The executive contract protects the far-reaching rights of the employee; it also protects the interests of the company. The goal of negotiating an executive contract is for the executive to get as much as she can. At the same time, she does not want to leave the potential employer feeling as if they lost the negotiation.
It is strongly recommended that you consult your attorney about any job offer that you made to any senior team members starting at the associate director level.
Executive Team Member Job Offer Letter Template
Use this template to help you put together job offers to senior level employees.
City, State, Zip
Dear Name of Candidate:
It is my pleasure to extend the following offer of employment to you on behalf of (your company name). This offer is contingent upon your passing our mandatory drug screen, our receipt of your college transcripts, and (any other contingencies you may wish to state).
Reporting Relationship: The position will report to (Name and Title):
Job Description and Goals or Objectives are attached.
Base Salary: Will be paid in bi-weekly instalments of $_________, which is equivalent to $_______ on an annual basis, and subject to deductions for taxes and other withholdings as required by law or the policies of the company.
Bonus (or Commission) Potential: Effective upon satisfactory completion of the first 90 days of employment, and based upon the goals and objectives agreed to in the performance development planning process with your manager, you may be eligible for a bonus. The bonus plan for this year and beyond, should such a plan exist, will be based on the formula determined by the company for that year.
Signing Bonus: $10,000 payable during the first pay period.
Non-Compete Agreement: Our standard non-compete agreement must be signed prior to your start date.
Benefits: The current, standard company health, life, disability and dental insurance coverage are generally supplied per company policy. Eligibility for other benefits, including the 401(k) and tuition reimbursement, will generally take place per company policy. Employee contribution to pay for benefit plans is determined annually.
Car Allowance$500.00 per month car allowance will generally be provided.
Stock Options: Spell out any options that may be available for purchase by the executive. Spell out any options or other stock vehicles for which the executive is eligible.
Stock Buy-Back ProvisionsDetail how the executive's stock will be repurchased by the company if the executive leaves the employer for any reason other than cause.
Severance Pay: If the executive is let go by the company for any reason other than cause (for example, violence, theft, fraudulent activities, harassment, and so forth), the company will pay the executive six months of salary and cover COBRA expenses for the executive's family during the same time period. Payment is due in a lump sum upon termination or is payable in regular pay periods over the six months. (Determine the details of the severance package.)
Expenses: Spell out any moving or other transition expenses the company will pay.
Vacation and Personal Emergency Time Off: Vacation is accrued at x.xx hours per pay period, which is equivalent to four weeks of paid time off on an annual basis. Personal emergency days are generally accrued per company policy.
Phone/Travel Allowance: Normal and reasonable expenses will be reimbursed on a monthly basis per company policy and upon completion of the appropriate expense request form.
Start Date: Month, Date, Year
Your employment with (Company Name) is at-will and either party can terminate the relationship at any time with or without cause and with or without notice.
You acknowledge that this offer letter, (along with the final form of any referenced documents (such as a Stock Repurchase Plan, Job Description, Bonus Goals, and so forth.), represents the entire agreement between you and (Company Name) and that no verbal or written agreements, promises or representations that are not specifically stated in this offer, are or will be binding upon (Company Name).
If you are in agreement with the above outline, please sign below. This offer is in effect for (generally, five business days).
(For the Company: Name)
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment laws and regulations vary from state to state and country to country. Please seek legal assistance, or assistance from State, Federal, or International governmental resources, to make certain your legal interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.