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"Negotiating and Drafting Major Business Agreements" (Insight Conference, February, 2008)
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Date: February 1 2008 |
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In describing compensation in an employment agreement, it is important to set out the initial salary and whether the person is subject to an incentive, commission or bonus plan. However, it is very important that the corporation not be locked into promises it cannot fulfill. While the starting salary should be specified, ensure that you do not promise an annual increase. It is appropriate to promise an annual review, if this is the corporate practice. However, be careful about setting out a particular date for the annual review, as corporate procedures and policies in this area are subject to change. Similarly, do not refer to an annual performance appraisal process, if the corporation does not have a good history of completing annual performance appraisals. For more information, click the download PDF button below.
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