Over recent weeks, I’ve seen a noticeable rise in enquiries from senior executives with complex pay architecture such as long‑term incentive plans, deferred bonuses, share awards, carried interest, and multi‑layered performance schemes. Many sense that an ‘agreed exit’ conversation is coming and they are taking advice early to be prepared.
These enquiries are not a coincidence; they are largely driven by the January removal of the cap on unfair dismissal compensation; organisations are reassessing senior roles earlier than they otherwise would have.
Across all matters, I am seeing four consistent themes:
- Cost exposure. Organisations are calculating the difference between a capped payout now and an uncapped payout in January.
- Legacy contract clean up. Older employment agreements with generous multipliers or outdated protections will become materially more expensive once the cap disappears.
- Performance recalibration. Issues previously tolerated (or delayed being dealt with) are being addressed before the financial framework shifts.
- Succession plans accelerated. Planned transitions are being brought forward so new leaders start under the post‑January regime under fresh revised employment agreements.
How can senior executives prepare in advance?
Executives often say ‘I think a conversation might be coming’ or ‘I feel I am being pushed out.’ They want some control over what happens and to know how they may leverage their position in any ‘off the record’ or ‘without prejudice’ discussion.
Below are my key tips:
- Clarify your recent value, the specific commercial outcomes, stabilising actions, or board‑level contributions that matter in the current climate. This will help context our ask.
- Understand the organisation’s pressure points; investor expectations, cultural shifts, upcoming announcements. No-one wants upheaval.
- Review your LTIPs and incentive arrangements; vesting schedules, performance conditions, malus/clawback triggers, and how different exit routes affect treatment. We can assist with giving you clarity on this.
- Check bonus and deferred schemes; discretionary elements, pro‑rating rules, ‘good leaver’ criteria, and any guaranteed components. Again, we can assist.
- Scrutinise restrictive covenants: non‑compete, non‑solicit, non‑deal, confidentiality obligations. If unduly onerous, there may be negotiation around this.
- Define your red lines; announcement wording, references, confidentiality scope, equity treatment, timing. Forward planning will make the process smoother.
- Shape your required forward narrative; a clear, credible explanation of ‘why now’ that protects your next move.
- Seek early advice. This is not to escalate matters (unless you wish to take the initiative), but to ensure you’re ready if the conversation arrives.
If you sense movement around your role, early advice will ensure you’re prepared with a plan, with clarity, and with control over how you engage and how you protect your next career move.
