Employment and Option Agreements

Employment contracts and option agreements have become increasingly complex. Executives, entrepreneurs and professionals all need to understand the agreements they are provided or they enter with their employees. In today’s economy, companies are cautious and often insistent on stronger non-compete, non-solicitation and other key provisions. Option agreements have longer vesting and shorter exercise periods, with more restrictions. Moreover, the tax implications of employment and option agreements have become more complex. With the implementation of Internal Revenue Code section 409A in 2005, employees may be at risk for a 20% penalty tax on “deferred compensation,” which is broadly defined and may capture bonus payments and other compensation not paid within two and a half months of the end of the prior year.

If you have or are negotiating your employment agreement or stock options, or if you are providing employment agreements to your key employees, and you want to review the provisions and understand the steps, call Attorney Sean Byrne’s Grosse Pointe office. Attorney Byrne has represented executives, professionals and employers negotiating employment agreements and stock options, and he can represent and protect your interests in this dynamic area of the law.