Foley’s webinar said executive employment agreements should be drafted across the full employment lifecycle, with 10 recurring risk areas that can reshape compensation, severance, tax treatment and later disputes.
Section 409A, Sections 280G and 4999, and plan-governance rules were highlighted as key pressure points because bonus timing, equity terms, severance structure and change-in-control payouts can trigger unintended tax and compliance consequences.
Salary definitions, work location, benefits eligibility and disability language were cited as foundational terms, since small drafting choices can affect bonus formulas, good-reason rights, governing law and benefit obligations.
Restrictive covenants and whistleblower carveouts also need regular updates as state law and enforcement priorities evolve, while companies were urged to align employment agreements with equity, bonus and benefit plans to preserve flexibility and cut dispute risk.