Negotiated Departures for Executives and Senior Executives
Leaving a company involves more than the amount of a severance payment. For executives and senior executives, a departure may also affect variable compensation, bonuses, notice periods, non-compete clauses and unemployment benefits, as well as management packages, BSPCEs, stock options and free share awards.
As an employment lawyer, I advise executives and senior executives in Aix-en-Provence and Paris, including international profiles working in France, on preparing, negotiating and securing the terms of their departure.
The objective is to assess your situation as a whole, quantify the different scenarios and define your strategy before entering into negotiations.
Preparing Your Departure Before Negotiating
Departure negotiations should be prepared before entering into discussions with your employer or accepting an offer.
Your employment contract, length of service, fixed and variable compensation, the circumstances of your departure, any equity-related elements and your professional plans should be considered together.
This analysis helps identify your rights and negotiating leverage, but above all, determine what can realistically be negotiated and on what basis.
The aim is not simply to secure additional compensation, but to negotiate the best overall terms for your departure, taking into account your situation and objectives.
My 5-step approach to securing your departure negotiations
1 Assess & Quantify
Analysis of your employment contract, length of service, fixed and variable compensation, severance payments, notice period and the various elements that may form part of the negotiation.
The objective is to establish a clear and accurate negotiating baseline before any discussions begin.
2 Define the Strategy
Every situation is different. I assess the circumstances of your departure, the balance of power, the different possible scenarios and their consequences in order to define a strategy tailored to your priorities.
3 Negotiate & Secure
Negotiations cover the overall terms of your departure: severance payments, departure date, notice period, bonuses, non-compete clause and any other elements specific to your situation.
Once an agreement has been reached, its terms must be legally secured.
4 Address Equity
For executives concerned, a departure may have implications for management packages, BSPCEs, stock options or free share awards.
These elements are assessed and incorporated into the departure strategy..
5 Prepare for What Comes Next
The negotiation should also anticipate what happens after your departure: unemployment benefits, the timing of your next professional project and, where appropriate, support from a recognised partner outplacement firm.
All the Key Considerations in a Negotiated Departure
Negotiating a departure can involve a wide range of legal, financial and professional considerations. For executives and senior executives, some of these need to be anticipated before negotiations even begin.
Severance Payments & Departure Valuation
Before entering into negotiations, it is essential to determine your negotiating baseline accurately.
Statutory or collectively agreed severance payments, notice periods, fixed and variable compensation, bonuses and benefits, as well as the financial implications of the different termination scenarios, should be assessed as a whole.
The objective is not simply to calculate a severance payment, but to quantify the overall terms of your departure before negotiations begin.
Management Packages
For some executives and senior executives, a significant part of the financial implications of their departure may be linked to a management package.
It is essential to review the relevant mechanisms and applicable documentation in order to assess how the departure may affect your rights and to incorporate these elements into the overall negotiation strategy.
BSPCEs, Stock Options & Free Share Awards
When a management package includes BSPCEs, stock options or free share awards, your departure may affect their vesting, exercise or retention.
The applicable terms should be reviewed sufficiently early, particularly before determining the date and terms of your departure.
Good Leaver / Bad Leaver
In some management packages, the circumstances of an executive’s departure may determine what happens to their shares and how they are valued, particularly through Good Leaver or Bad Leaver clauses.
These clauses should be reviewed before negotiating the departure in order to assess their financial implications and incorporate them into the overall departure strategy.
Bonuses & Variable Compensation
The date and terms of your departure may affect the payment of a bonus, variable compensation or other components of your remuneration.
These elements should be identified and taken into account during negotiations before any agreement is formalised.
Non-Compete Clause
A non-compete clause may directly affect your ability to join another company or pursue a new professional project.
Whether the clause is maintained or waived, as well as its financial implications, can therefore be an important part of the negotiation.
Unemployment Benefits & Deferred Compensation Period
The amount and nature of the severance payments negotiated may affect the waiting period before unemployment benefits from France Travail begin.
A departure offer should therefore be assessed not only in terms of the amount obtained, but also in light of its impact on your financial situation following the termination of your employment.
Mutual Termination Agreement or Dismissal: Which Departure Strategy?
A mutual termination agreement (rupture conventionnelle) is not necessarily the most favourable option in every situation.
Depending on the circumstances, a dismissal followed by negotiations, a settlement agreement or another scenario may have different implications for the overall amount obtained, the timing of your departure, unemployment benefits, or certain compensation and equity components.
Where there is also a risk of litigation before the French Employment Tribunal (Conseil de prud’hommes), this should be taken into account when assessing the different scenarios and defining the negotiation strategy.
Before accepting a mutual termination agreement or any other proposal, it is therefore important to compare the different options available.
The objective is not to choose a legal mechanism in isolation, but to determine which strategy will best secure the overall terms of your departure.
When Should You Consult a Lawyer About Negotiating Your Departure?
The best time to assess your situation is generally before the terms of your departure have been finalised.
A reorganisation, a change in your role or responsibilities, being sidelined, a deterioration in working relationships, a proposed mutual termination agreement or notification of dismissal can all be key moments to seek legal advice.
Seeking advice early allows you to assess the different scenarios, quantify their implications and prepare your negotiation before taking a position with your employer.
If discussions have already begun, it is still possible to review the offer received and identify which elements may be renegotiated.
Preparing for What Comes Next
A successful negotiation is not measured solely by the amount obtained.
The departure date, unemployment benefits, non-compete clause, how your departure is communicated, and the timing of your next professional project can all have a significant impact on what comes next.
Where appropriate, support can also be extended through recognised partner outplacement firms to help prepare for the next stage of your career.
Negotiating a departure is one of the key moments when legal, financial and professional considerations can be particularly significant. More broadly, the firm advises executives and senior executives at key moments throughout their careers.
An employment lawyer in Aix-en-Provence and Paris
I advise executives and senior executives in Aix-en-Provence and Paris, both in person and remotely.
In Aix-en-Provence and the Bouches-du-Rhône area, I advise executives facing departure negotiations, a mutual termination agreement, dismissal, or a professional situation that may lead to the termination of their employment contract.
In Paris and the Île-de-France region, the firm has an office in the 8th arrondissement of Paris and advises executives and senior executives in negotiations with their employers.
Remote consultations also enable me to advise clients throughout France.
I advise my clients in both French and English, including international executives and expatriates working in France.
FAQ
Frequently Asked Questions About Departure Negotiations
Contact domaniewicz avocat
42 Avenue Victor Hugo
13100 Aix-en-Provence
9 Rue Treilhard
75008 Paris
+33 6 23 61 20 01