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That’s exactly what it’s supposed to mean. How big of a loophole it is remains to be seen. Would this loophole fit $300,000/year McKinsey consultants? Would it
by runnerup 5y ago
That’s exactly what it’s supposed to mean. How big of a loophole it is remains to be seen. Would this loophole fit $300,000/year McKinsey consultants? Would it fit $75.000/year Accenture engineers?
The idea is that the CFO people are compensated so highly that they’re not substantially harmed by the existence of the non compete. Losing out on a $100 million opportunity when you made $10 million in the last 4 years is much, much less painful than losing out on a $130,000 opportunity when you made $70,000 last year.
Granted, a lot of CFOs are making $300,000 or sometimes even less. But they are seen as having a lot of power to destroy a business.
Another way this works is that people like Anthony Levandowski could get a “CTO” esque title to go along with their stratospheric salary so that the non compete is still strictly binding in Colorado, even absent proof of trade secret violations.
- lotsofpulp 5y agoIf that was the case, then why does the law not state a maximum compensation number after which non competes are allowed?
- runnerup 5y agoBusinesses want some leeway to be able to bind high level employees who are most likely to have the industry connections and strategic knowledge to truly beat them using knowledge they gained during their employment. General population finds the exceptions more palatable when the language can be presented to sound like it’s only binding deca-millionaires. This language is a compromise solution, so contracting firms like Accenture will attempt to figure out what they can still get away with.