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Deferred Compensation Agreements
"I need a Deferred Compensation Agreement for our new Chief Technology Officer in Dublin, with 40% of their annual bonus to be deferred over three years, vesting annually from January 2025, including clawback provisions and performance conditions linked to our tech division's growth targets."
1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Sets out the context and purpose of the deferred compensation arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Eligibility and Participation: Establishes the criteria for participation in the deferred compensation arrangement
5. Deferred Compensation Amount: Specifies the amount of compensation to be deferred and calculation methods
6. Vesting Schedule: Details the vesting periods and conditions for the deferred compensation
7. Payment Terms: Outlines when and how deferred compensation will be paid
8. Tax Treatment: Addresses tax implications and responsibilities
9. Compliance with Code Section: Ensures compliance with relevant Irish tax and employment laws
10. Amendment and Termination: Procedures for modifying or terminating the agreement
11. Governing Law: Specifies Irish law as governing law and jurisdiction
1. Clawback Provisions: Include when requiring ability to recoup payments in certain circumstances (common in financial services)
2. Non-Competition Clause: Include when seeking to restrict employee's ability to work for competitors
3. Change in Control Provisions: Include when addressing impact of company ownership changes
4. Performance Metrics: Include when deferral is tied to specific performance targets
5. International Tax Provisions: Include when employee may be subject to multiple tax jurisdictions
6. Death and Disability Provisions: Include specific provisions for payment in case of death or disability
1. Schedule 1 - Calculation Method: Detailed methodology for calculating deferred amounts
2. Schedule 2 - Vesting Schedule: Detailed timetable showing vesting dates and percentages
3. Schedule 3 - Performance Criteria: Specific metrics and targets if compensation is performance-based
4. Appendix A - Tax Documentation: Required tax forms and declarations
5. Appendix B - Beneficiary Designation Form: Form for designating beneficiaries in case of death
6. Appendix C - Notice Requirements: Templates and procedures for required notifications
Authors
Financial Services
Technology
Professional Services
Manufacturing
Pharmaceutical
Healthcare
Retail
Telecommunications
Energy
Construction
Real Estate
Media and Entertainment
Human Resources
Legal
Finance
Compensation and Benefits
Tax
Compliance
Corporate Governance
Executive Management
Payroll
Risk Management
Chief Executive Officer
Chief Financial Officer
Executive Director
Senior Manager
Department Head
Vice President
Managing Director
Partner
Senior Consultant
Regional Director
Sales Director
Investment Manager
Senior Engineer
Research Director
Product Manager
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