When a group offers an executive the position of corporate officer within a subsidiary, the temptation to accept is strong… But it is important to understand all the implications, as the decision can have significant consequences for the executive.
This is especially true since employers sometimes ask employees to resign from their employment contract before taking up the corporate office (typically, LBO managers).
As the guarantees offered to corporate officers by law are virtually non-existent, it is important that they be set out in a contract between the parties before the term of office begins, if necessary in a formal mandate agreement.
In practice, Astaé is able to assess the overall situation and help the executive concerned negotiate with the shareholder for adequate protections/guarantees, whether in terms of the compensation package, the financial conditions of termination, or the benefit of “revocation” insurance, such as GSC.
It should be noted that, under the influence of Anglo-Saxon practices, the liability of executives and D&O (Directors & Officers) insurance, as well as delegations of authority, are also becoming key issues.
