Releases

The best way for companies to avoid litigation after terminating executives is to offer a severance package that not only puts executives in a good financial position, but also helps them to land new employment, says executive employment lawyer Joe Ahmad of Houston's Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C. If an employer doesn’t typically offer severance, executives should ask for one anyway, he says. “If you’re already out of a job, what’s the worst they can do?” Ahmad asks. “Executives should suggest a dollar figure based on expected months of unemployment, as well as a release of any non-compete obligations and a good reference.” Also on the table: accelerated vesting of stock and stock options, COBRA payment reimbursement, and unused sick/vacation time. Some executives may be asked to sign a release as part of a severance. “That’s understandable, since litigation avoidance is probably the reason for the severance,” Ahmad says. “But have a lawyer review it before signing.” For more information, contact Mary Flood at 800-559-4534 or mary@androvett.com.