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You'd assume that if a CEO were asking you to sign such an agreement, they would offer some sort of incentive in return. Otherwise it seems more like an ultimat
by jakejake 11y ago
You'd assume that if a CEO were asking you to sign such an agreement, they would offer some sort of incentive in return. Otherwise it seems more like an ultimatum for you to declare your loyalty.
- TylerE 11y agoActually, contractually that gets really interesting. Basically, for a contract to be valid both sides have to give something, this is referred to as "consideration". Now, normally, with work-related contracts the consideration is "continuing to employ you", but with senior mgmt (golden parachutes, stock options, etc) I bet the waters are murky.
- cstejerean 11y agoFrom what I recall "continuing to employ you" is not legally acceptable consideration, because you had the job before the contract, and therefore you are not getting anything new. If it involves a pay raise, promotion, a bonus, etc, then it can be acceptable. IANAL.
- kylec 11y agoContinued employment is sufficient consideration for some contracts http://www.jacksonlewis.com/publication/continued-employment-adequate-consideration-non-compete-imposed-mid-employment-hawaii-judge-rules http://www.jacksonlewis.com/publication/continued-employment.... However, I can't imagine that if Yahoo was so desperate to retain its executives that it would fire them if they didn't sign the agreement. I'm guessing that there was some additional incentive offered.