Has your partner lost their right to claim a golden parachute?

The higher someone’s pay and the more prestigious their title, the harder it can be for them to connect with another, comparable job on short notice when they decide to leave a position or lose their employment.

Golden parachutes are benefits and severance packages that executives and other high-ranking employees may receive when leaving a company. For example, someone stepping into a top corporate role at your company might insist on receiving a pension if they stay with the business for a certain number of years. Others negotiate to retain benefits for months or even years after exiting a position.

Golden parachutes often involve stock options or one-time bonuses that can be lucrative for the person exiting the company. Whether you feel blindsided because your partner wants to leave years before you thought they would or you have asked them to leave because of perceived misconduct, you and your partner may disagree about whether they qualify for the golden parachute you negotiated when you signed your partnership agreement. How do you resolve such conflicts?

The contract is key in a severance dispute

An executive or co-owner’s right to specific compensation typically stems from their contract with their co-owner or with the company itself. Especially in scenarios where one partner strongly believes that the other does not qualify for a golden parachute, a thorough review of the existing agreement is likely necessary.

Sometimes, you will be able to show your partner that they did not meet the standards for securing that compensation or you can prove that they violated other terms of the contract that might negate their rights to claim the golden parachute.

Filing a civil claim could lead to a quicker resolution

The vast majority of disputes about partnership agreements and business transactions end up resolved outside of a courtroom. However, initiating legal action when you review the contract and are clear about the strength of your legal position can more quickly resolve the disagreement.

You may not need to go to court at all, as your partner may more readily consider compromising and working with you if they know that a review by a judge is imminent. Instead of languishing in frustrating negotiations for weeks, you may want to file a lawsuit to speed up the process of resolving their exit.

Taking the right steps when facing a significant business dispute with a partner can help you resolve the matter with the least amount of stress and expense possible.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney, nor do you have an attorney-client relationship with Schwartz Law Firm unless and until the same is expressly agreed to. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site