Exit Package Negotiation Tips

Summary

Negotiating an exit package for a president of an S corporation involves several key considerations. These include ensuring severance pay reflects tenure and contributions, discussing the continuation of health benefits, addressing any vested or unvested stock options, and understanding non-compete agreements. When focusing on shareholder value, consider equity valuation, buyout terms, the impact on remaining shareholders, and tax implications. Consulting with a legal professional can provide personalized advice tailored to your specific situation.

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negotiating exit package for president at * person s corporation
Negotiating an exit package can be complex, especially for a president of an S corporation. Here are some general points to consider:
- Severance Pay: Ensure it reflects tenure and contribution.
- Benefits Continuation: Discuss continuation of health benefits, if applicable.
- Stock Options or Equity: Address any vested or unvested stock options.
- Non-Compete Agreements: Understand any restrictions post-exit.
Is there a specific aspect of the exit package you're concerned about?
shareholder value
When considering shareholder value in an exit package negotiation, you might want to focus on:
- Equity Valuation: Determine the current value of your shares.
- Buyout Terms: Establish conditions under which your shares will be bought out.
- Impact on Remaining Shareholders: Consider how your exit affects other shareholders.
- Tax Implications: Understand the tax consequences of the transaction.
Is there a specific aspect of shareholder value or valuation you're looking to explore further?