Future Talent Series: Executive Terminations
Last week, Frazer Jones hosted the final session of the Future Talent series in 2017 which was led by Adam Williams, partner at DMH Stallard. The session was a great way to conclude the series as Adam began the session by talking through some of the issues that frequently arise when dealing with senior-level terminations. We have detailed some of these below to give an outline of key areas;
• Calculating the amount of any potential compensation;
• The effect of termination on the executive’s rights to bonuses or other deferred remuneration;
• Working out the options for effecting the termination of the executive’s employment;
• Constructing an offer to the executive and negotiating a deal;
• Employments with the Companies Act 2006, the Listing Rules and corporate governance requirement;
• Post-termination restrictions and garden leave; and
• Removing the executive as an office holder.
The Future Talent group were then given a case study and we discussed some of the practical considerations that any business should make when faced with this dilemma. As you would expect, there were many aspects to consider and importantly, any mistakes made by HR in this scenario are likely to result in a costly settlement for the business. The Future Talent Group were then asked to formulate a settlement offer for our case study CEO. Due to the case study business being listed on the LSE, consideration had to be given to the Companies Act 2006 specifically Section 217 and the UK Corporate governance code and ABI/NAPF guidelines.
The session was hugely insightful for the group and was again excellently led by Adam Williams. Frazer Jones would like to express our thanks and gratitude to Adam for his support throughout the Future Talent series as well as everyone else who has contributed this year.
It has been a highly subscribed event and should you want to nominate someone from your team to take part in 2018's series, please get in touch with Rowena Spurgeon (firstname.lastname@example.org).