Reviewed by Greg Mansell
Few moments in an executive’s career move as fast as a termination. A meeting is scheduled, a separation agreement is placed on the table, and access to email is cut off within hours. What you do in the first 72 hours can shape the value of your exit for years. Here is how to protect yourself.
1. Do Not Sign Anything in the Meeting
You are rarely required to sign a separation agreement on the spot, and you should not. The agreement almost always includes a release of claims, and once it is signed and any revocation period has passed, undoing it is very difficult. If you are 40 or older, federal law generally requires that you be given at least 21 days to consider a release of age discrimination claims (45 days in a group layoff) and 7 days to revoke after signing. Ask for a copy, confirm the deadline in writing, and say you will review it with counsel.
2. Gather the Documents That Control Your Exit
The value of your package is driven by documents you may not have read in years:
- Offer letter and employment agreement
- Equity plan, award agreements and grant summaries
- Bonus, commission and long-term incentive plans
- Deferred compensation plan statements
- Non-compete, non-solicit and confidentiality agreements
- Any company severance plan or policy
Collect your own copies of documents you are entitled to keep. Do not download or take confidential company information, which can create claims against you.
3. Write Down What Happened
While the details are fresh, write a timeline: recent performance feedback, any complaints you raised, leave you took, changes in reporting lines, who was in the termination meeting, and exactly what reason you were given. If your termination followed a complaint about harassment, discrimination or financial misconduct, that sequence matters. See Executive Wrongful Termination.
4. Check Your Equity and Option Deadlines
Unvested equity often forfeits on termination unless your agreements or a negotiated separation provide otherwise, and vested options usually must be exercised within a limited window after employment ends. Those deadlines keep running while you negotiate. Confirm every date now. See Executive Equity Compensation.
5. Be Careful What You Say
Stay professional with colleagues, clients and on social media. Avoid making statements about the company that could later be used against you or complicate a non-disparagement negotiation. Let your counsel handle substantive communications with the company about the package.
6. Understand That the First Offer Is a Starting Point
Companies often expect executives to negotiate. Contract rights, equity value, restrictive covenants and potential claims all create leverage. An experienced executive severance lawyer can identify what the first offer leaves out and negotiate improvements on cash, bonus, equity, benefits, references and covenants. See Executive Severance Negotiation.
Get Advice Before You Sign
Mansell Law represents executives in New York City and nationally in severance negotiations, equity disputes and unlawful termination claims. For a confidential consultation, call (646) 921-8900 or contact us online. Learn more about our representation of executives.
This article provides general information, not legal advice, and does not create an attorney-client relationship.