The Chief Executive Officer Employment Agreement is a crucial document used when appointing the highest-ranking executive officer of a company in Indonesia. It serves as the primary legal instrument defining the relationship between the company and its CEO, incorporating requirements from Indonesian Labor Law, Company Law, and relevant regulations governing executive employment. This agreement is essential when hiring new CEOs, promoting internal candidates to the CEO position, or renewing existing CEO contracts. The document covers comprehensive terms including appointment, duties, remuneration, benefits, performance metrics, and termination provisions, while ensuring compliance with mandatory Indonesian employment regulations and corporate governance requirements. It's particularly important as it needs to balance executive autonomy with accountability to the board and shareholders, while incorporating any specific requirements for foreign executives if applicable.
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1. Parties: Identification of the employing company and the CEO, including their respective addresses and registration details
2. Background: Context of the appointment, including any relevant corporate approvals and previous employment history
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Details of the CEO position, commencement date, and duration of employment
5. Duties and Responsibilities: Comprehensive outline of CEO's roles, obligations, and scope of authority
6. Working Location and Hours: Primary work location and expectations regarding time commitment
7. Remuneration and Benefits: Base salary, bonuses, equity participation, and other benefits
8. Leave Entitlements: Annual leave, sick leave, and other authorized absences
9. Confidentiality: Protection of company's confidential information and trade secrets
10. Intellectual Property: Ownership and rights to intellectual property created during employment
11. Non-Competition and Non-Solicitation: Post-employment restrictions on competitive activities
12. Performance Evaluation: KPIs, assessment criteria, and review processes
13. Termination: Grounds for termination, notice periods, and consequences
14. Post-Termination Obligations: Continuing obligations after employment ends
15. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes
1. International Travel: Include when role requires significant international travel
2. Expatriate Benefits: Include for foreign CEOs, covering relocation, housing, and other expatriate-specific benefits
3. Multiple Directorships: Include when CEO holds board positions in affiliated companies
4. Share Options: Include when offering equity-based compensation
5. Change of Control: Include provisions for scenarios involving company ownership changes
6. Garden Leave: Include when company wants right to place CEO on paid leave during notice period
7. Special Regulatory Compliance: Include for regulated industries (banking, insurance, etc.)
8. Family Benefits: Include when offering family health coverage, education allowances, etc.
1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, bonuses, and benefits structure
2. Schedule 2 - Position Description: Detailed outline of roles, responsibilities, and reporting relationships
3. Schedule 3 - KPIs and Performance Metrics: Specific performance indicators and targets
4. Schedule 4 - Company Policies: List of applicable company policies and procedures
5. Schedule 5 - Benefits Summary: Detailed description of all benefits and entitlements
6. Appendix A - Board Resolution: Copy of board resolution approving CEO appointment
7. Appendix B - Share Option Terms: Details of any share option or equity participation scheme
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Energy
Mining
Telecommunications
Real Estate
Consumer Goods
Transportation
Agriculture
Education
Professional Services
Construction
Entertainment
Hospitality
Relevant Teams
Human Resources
Legal
Board of Directors
Executive Leadership
Corporate Secretariat
Compliance
Finance
Compensation Committee
Nomination Committee
Relevant Roles
Chief Executive Officer
President Director
Managing Director
Executive Chairman
Group CEO
Country CEO
Regional CEO
Acting CEO
Interim CEO
Co-CEO
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