Executive Offer Letters | Practical Law

Executive Offer Letters | Practical Law

A well-crafted offer letter limits the potential for confusion and disagreements about employment terms and provides valuable protection to the company in the event of a dispute.

Executive Offer Letters

Practical Law Legal Update 7-596-6525 (Approx. 2 pages)

Executive Offer Letters

by Practical Law Employee Benefits & Executive Compensation
Published on 20 Jan 2015 • USA (National/Federal)
A well-crafted offer letter limits the potential for confusion and disagreements about employment terms and provides valuable protection to the company in the event of a dispute.
Executive offer letters are similar to employment agreements, however, they are generally shorter and less formal. They set out the basic employment terms being offered, including:
  • The position and the duties associated with it.
  • The base pay and other cash and equity compensation offered.
  • A statement that the executive is being hired at-will and that the executive's employment may be terminated at any time for any reason.
A well-crafted offer letter limits the potential for confusion and disagreements about employment terms and provides valuable protection to the company in the event of a dispute.
For a sample executive offer letter, see Practical Law's Standard Document, Executive Offer Letter, which contains sample provisions and integrated drafting notes with important explanations and drafting tips.