Senior executives
Executive departure negotiations
A senior executive's departure cannot be improvised. Compensation, tax, protection of the corporate office and clauses affecting the future all carry significant weight and can be negotiated. As a former HR Director who became an employment lawyer, I have sat on both sides of the table: preparing departures within a company and now protecting executives through them. This dual experience allows me to anticipate the employer's strategy and negotiate as closely as possible to your interests.
How I support you
- Analysis of your position: employment contract, corporate office, or both.
- Assessment of the best exit route: mutual termination, settlement agreement, or a combination of both.
- Calculation of the amount actually received after social security contributions and tax.
- Review and protection of the non-compete clause and its financial consideration.
- Direct negotiation with the company and its counsel.
- Drafting and review of the settlement documentation.
The issues that make a difference
- The distinction between a corporate office and an employment contract, whose protections do not automatically combine.
- The tax and social security treatment of compensation, which is more restrictive for executives than for employees.
- The interaction with unemployment insurance rights.
- The treatment of deferred compensation schemes (BSPCE warrants and free shares) upon departure.
Frequently asked questions
Is a corporate officer entitled to severance pay?
A corporate office is not an employment contract. Except in specific circumstances, it does not give access to statutory dismissal compensation or unemployment insurance. The outcome therefore depends on the negotiation and on a precise analysis of your status: corporate office only, or a valid combination with an employment contract.
Is an executive departure payment tax-free?
Only in part, and under rules that are stricter than those applying to employees. In the event of a forced termination of office, the income-tax exemption is capped. Above a certain threshold, the full payment may be subject to social security contributions from the first euro. The figures should be assessed in advance to avoid surprises in the net amount received.
Mutual termination or settlement agreement: which should I choose?
It depends on your position, the amount at stake and your objectives, including unemployment rights, timing and legal certainty. Each route has different tax and social security consequences. The aim is to choose the option that maximises your net outcome, not merely the headline amount.
Should the non-compete clause be negotiated?
Often, yes. A non-compete clause restricts your freedom to move into a new role and must include financial consideration. Its scope, duration and compensation can be negotiated at the time of departure.
How long does an executive departure negotiation take?
From a few weeks to several months, depending on the complexity of the matter and the company's position. Early advice, before anything is signed, always provides stronger protection for your interests.
This page outlines the main features of the support provided. It does not constitute personalised legal advice: each matter must be assessed in light of its own circumstances.