Leveraging Your Achievements to Secure a Better Executive Employment Contract

By Robert A. Adelson

For CEOs and C-level executives, your past and recent achievements for your company can serve as a useful tool in your next executive employment contract negotiations. 

This article discusses contract renegotiations and renegotiations strategically so that you can secure terms that better reflect your value to the organization and provide you with a greater share of the increased benefit your work has brought to the company. 

👉 What achievements merit strategic negotiations?

Successful achievements can include leading a successful product launch, expanding the company’s market share, steering your company through significant challenges, or exceeding expectations in other ways.   In each case, your accomplishments can give rise to the necessary leverage to improve your executive employment contract terms and compensation package.

👉 Why would the Board agree to increase your compensation package?

The reasons a board may support the renegotiation of your package include the following:

1. Acknowledgment that your original package was based on the Board being unaware of all you could accomplish and recognition that your package is insufficient. 
2. By increasing your package, they do so with a known commodity that has proven its worth to the company. 
3. Recognition that other companies, too, might see your achievements and try to gain your services.
4. The company chooses not to risk losing a high-performing executive to a competitor, which may also result in disruption to an established and effective team. 
5. Risk to the company that if they lose you, there is uncertainty regarding the performance of a successor, not to mention the significant expense and effort involved in finding a replacement. 
6. As the company navigates through leadership changes, it also runs the risk of losing momentum in building on past successes.

👉 Recognizing the Right Time for Negotiations

The normal tendency is inertia.  Why make changes?  So, it is wise to plan to initiate action to sweeten your compensation package.  Timing plays an important role in renegotiating your executive employment contract. 

The ideal moment often arises after a major success, such as delivering exceptional financial results, completing a high-impact project, or leading the company through a challenging period. These milestones highlight your contributions and provide tangible proof of your value.

Another key opportunity is when your responsibilities evolve beyond the scope of your original contract. As organizations grow, the roles of C-suite executives often expand, necessitating adjustments to compensation and contracts to reflect these changes.

👉 Strategies for Negotiating Your Next Executive Contract

Due to your success, you are now a more attractive candidate for other opportunities. If your current company isn’t offering enough to reward past success and incentivize future achievements, you should consider whether it’s time to move on. Explore opportunities through recruiters and networking.  

If you can find opportunities with better employment terms that reflect your value, you will be ready to negotiate with your current employer.  This way, if your employer won’t pay you your worth, there is a “plan B” to negotiate with the company that will. 

When approaching your current employer, you don’t need to disclose specific offers but make it clear you are willing to leave if your terms aren’t met. If they won’t sweeten your package, it may be time to move to a company that will recognize your worth. 

A powerful executive contract negotiation tool is keeping an “ace in the hole.” You do this by sharing your vision for the future with your employer. This shifts the conversation from gratitude for past achievements to securing your services for the company’s future success. 

The ace in the hole is telling only part of your plans.  More to come if the package you seek comes through.  With your proven track record, you can present a compelling case for why investing in your future is in their best interest.

👉 Highlight Achievements in Negotiations

When entering executive employment contract negotiations, presenting your achievements effectively enhances your effectiveness.  It is wise to couple your compensation changes with a series of achievements and plans for still more.

In setting out your accomplishments, it is wise to focus on measurable results, such as exceeding revenue targets, increasing shareholder value, or successfully executing strategic initiatives. Concrete data and specific examples carry more weight than general claims of success.

👉 Executive Employment Contract Terms to Renegotiate for

Your achievements justify more than compensation increases. Renegotiations are an opportunity to refine the executive employment contract terms to better suit your position and goals. This can include enhanced equity compensation, where you may request additional stock options or restricted stock units to align your rewards with the company’s long-term success. Performance-based incentives like adjusted bonus structures can also reflect the milestones you are most likely to influence.

Your renegotiated contract can also include additional protection. You may want to renegotiate stronger severance terms to safeguard your interests in case of unexpected changes in leadership or company direction. 

You may even be able to use this negotiation to adjust the impact of restrictive covenants like non-compete agreements. You can use this time to ensure that these are reasonable in scope and duration to protect your career mobility.

Legal Expertise Matters in Executive Employment Contract Negotiations

Negotiating or renegotiating a contract is complex, involving legal language and tax implications that require careful consideration. By partnering with a skillful executive employment agreement attorney, you can structure your contract to maximize compensation while avoiding unintended liabilities. For example, an attorney can identify clauses that limit your career opportunities, ensure compliance with evolving employment laws, and provide guidance on equity compensation structures. If you’ve achieved significant success as a C-suite executive, watch out for opportunities to leverage those accomplishments to secure better executive employment contract terms and advance your career!