Executive Service Agreements for Employers
Tailored employment agreements that protect your business and clearly define the responsibilities, rewards and expectations of senior leaders.
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Senior executives and directors often require more detailed contractual arrangements than those used for the wider workforce. Their roles may involve significant decision-making authority, access to commercially sensitive information, performance-related remuneration and responsibilities that extend beyond their employment into board or shareholder matters.
DTM Legal advises employers on drafting, reviewing and negotiating executive service agreements for directors, senior leaders and other key personnel. We help businesses put clear arrangements in place covering responsibilities, remuneration, incentives, notice, termination and protections designed to safeguard important commercial interests.
Our Employment & HR solicitors can support employers when making a new senior appointment, promoting an existing employee or reviewing executive terms as the organisation develops. Where an individual is also a director or shareholder, we can work with our Corporate & Commercial team to ensure the employment agreement aligns appropriately with the wider corporate arrangements.
Executive Service Agreement Legal Services
We provide practical advice and support across a wide range of executive contract and senior appointment matters, including:
- Drafting executive service agreements
- Reviewing and updating existing executive contracts
- Contracts for managing directors, finance directors and other senior leaders
- Negotiating executive terms on behalf of employers
- Defining roles, responsibilities and reporting lines
- Salary, benefits and remuneration provisions
- Bonus, commission and incentive arrangements
- Long-term incentive and share-related provisions
- Notice periods and termination clauses
- Payment in lieu of notice provisions
- Garden leave arrangements
- Confidentiality and intellectual property protections
- Restrictive covenants and post-termination restrictions
- Non-compete, non-solicitation and non-poaching provisions
- Board appointments and director responsibilities
- Aligning employment terms with shareholder arrangements
- Reviewing agreements following promotions or changes in responsibilities
- Executive appointments connected with growth, restructuring or succession
- Supporting senior executive exits
- Settlement agreements and negotiated departures
Why Instruct DTM Legal?
Executive service agreements should reflect both the seniority of the individual and the specific risks associated with their role. Our Employment & HR team takes the time to understand the executive’s responsibilities, influence and access to commercially sensitive information before advising on appropriate contractual terms.
We provide practical and commercially focused drafting rather than relying on a standard senior employment contract. This allows provisions covering remuneration, termination, confidentiality and post-employment restrictions to be tailored to the organisation and the individual appointment.
Executive arrangements can also overlap with company ownership, board responsibilities and wider succession plans. Where appropriate, we work alongside our Corporate & Commercial solicitors to help ensure that employment, directorship and shareholder documentation work together effectively.
We provide:
- Bespoke executive service agreements tailored to senior roles
- Practical and commercially focused employment law advice
- Clear drafting around responsibilities, remuneration and incentives
- Appropriate confidentiality and business protection provisions
- Advice on notice, garden leave and termination arrangements
- Coordination with wider corporate documentation where required
- Support throughout appointments, contract reviews and executive exits
Get in Touch
Whether you are appointing a new senior leader, reviewing an existing executive contract or preparing for a change in your leadership team, our Employment & HR solicitors can help you put appropriate contractual arrangements in place.
To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.
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Frequently Asked Questions
Commonly asked questions regarding executive service agreements and their implementation.
- What is an executive service agreement?
- Why should employers use a separate agreement for senior executives?
- Is a company director automatically an employee?
- Can an executive service agreement contain restrictive covenants?
- When should an executive service agreement be reviewed?
An executive service agreement is an employment contract designed for directors, executives and other senior employees. It typically contains more detailed provisions than a standard employment contract because of the individual’s responsibilities, access to sensitive information and influence over the business.
The agreement may cover matters including remuneration, incentives, board responsibilities, confidentiality, restrictive covenants, garden leave and detailed termination arrangements.
A standard employment contract may not adequately address the responsibilities and commercial risks associated with a senior appointment. Executives may have access to strategic information, key customers, senior employees and confidential business plans.
A tailored executive service agreement allows the employer to establish appropriate responsibilities and protections from the outset while clearly documenting the remuneration and benefits associated with the position.
No. A company director is an office holder and is not automatically an employee simply because they sit on the board. An individual can, however, be both a director and an employee where a separate employment relationship exists.
Executive service agreements should therefore distinguish between the individual’s position as an employee and their appointment as a director, particularly when dealing with termination or resignation from office.
Yes. Executive agreements commonly include restrictions designed to protect confidential information, customer relationships, workforce stability and other legitimate business interests after employment ends.
Restrictions might include non-compete, non-solicitation and non-poaching clauses. Their enforceability will depend on the particular wording and circumstances, and Acas advises that restrictive covenants should be clear, specific and time-limited.
Executive agreements should be reviewed when an individual is promoted, their responsibilities materially increase or their remuneration and incentive arrangements change. They should also be considered during restructures, investment, succession planning or other significant developments within the business.
An agreement originally prepared for a more junior role may no longer provide appropriate protection once an executive has greater access to customers, employees, confidential information or strategic decision-making.
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