Retention and Change in Control Agreements
Employees working for a company that is facing restructuring due to possible bankruptcy, legal problems, mergers, or acquisition may be offered a retention or change in control agreement by their current employer. An employee can also approach the employer with the idea of a retention or change in control agreement when they feel their employment is jeopardized by these conditions. Retaining employees during restructuring and transitioning of a company is key to its profitability and value, giving the employee a distinct opportunity to negotiate favorable terms and conditions.
Philadelphia employment lawyers at Sidney L. Gold & Associates are experienced in formulating, negotiating, and reviewing retention and change in control agreements. The laws surrounding these agreements are complex, and only a reputable and competent lawyer can ensure that the employee’s compensation and benefits are clearly defined, and that they are protected in the event of termination or demotion during the restructuring period. Counsel can also protect clients from tax penalties that can occur from what is known as the Golden Parachute Tax, and negotiate a possible bonus for an employee that remains on the job throughout the restructuring period.