Archive for the 'Legal' Category

Adopt a Holistic Approach for Effective Succession Planning

Business succession planning was touched on in an earlier post, but there’s quite a lot to say on this topic. Few managerial processes are as complex as succession planning. Unlike other aspects of operating a business such as drawing up employee contracts, succession planning requires one to make difficult, tenuous, and often personal decisions about the direction the company will take in the future—a future that may differ radically from the one that was envisioned in the past.

Beginning succession planning early and adopting a holistic rather than top-down approach, however, can position the company for a smooth transition. Experts suggest teaching younger successors the value of accountability and critical thinking and showing them the impact that decisions have on the business.

Allowing professional development, both internally and externally, will increase the chances of a success. Consider forming a board comprised of junior members to give younger staff members opportunities to ask questions, learn, develop, and contribute to management decisions. Owners can instill valuable lessons about client communication, products and/or services, and company ethics well in advance.

Involving younger staff can also improve the chances of retention and longevity. For help with succession planning, contact Engel & Schultz, LLP, a Boston law firm specializing in all areas of business and corporate law, including employee stock options and contracts, phantom stock plans, partnerships, and more.

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submit on April 28th 2009 in Legal

Executive Contracts Require Legal Counsel

The debate in Congress over limiting exorbitant executive contracts in the financial sector has called attention to the issue of executive compensation. Top-level executives in a number of industries have found themselves and their compensation agreements subject to intense public scrutiny. Under the new stimulus plan, banks receiving bailout money must restrict bonuses for their executives, as well as place a ban on “golden parachute” severance packages, incentives that encourage “unnecessary and excessive risks,” and pay plans that “encourage manipulation of the company’s reported earnings.”

Even for companies outside of Wall Street, however, the issue of executive compensation has become a hot-button issue. In this environment, when both tensions and unemployment are high (a 17-year high of 7.6% in January), it is wise to seek legal counsel prior to signing a contract. An attorney with experience in employment negotiations and employment law can review the contract with you and explain the contract’s provisions to make sure that you understand the details and expectations for performance, as well as options for exiting the company.

Have confidence in your new career and your future. A bad contract could even be worse than no contract, but you can avoid both when you choose an experienced legal team such as Engel & Schultz, LLP. With nearly 30 years of experience practicing in the Boston area, the firm has handled many employment, business, and corporate law cases. A Boston corporate attorney from the firm can help you review your contract and determine if it is right for you.

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submit on March 26th 2009 in Legal

Employee Discrimination

There are a number of laws that are in place that prohibit an employer from discharging an employee on the basis of their personal characteristics. If you feel that these laws have been broken, it might be time for you to contact a discrimination lawyer. Just what are an employee’s rights under the law? One of the major sources of federal protection for employees is the civil rights laws. Under these laws, a worker’s color, race, sex, religion, or country of origin can’t be used at the reason for terminating employment. Likewise, discrimination based on an employee’s age is also prohibited, whether it results in the discharge of a worker or a reduction in the wages that he or she is paid. A wrongful termination attorney might also be called on in the case of discrimination against disabled persons–for some employers, disability is not a legally-allowable basis for discharging an employee.

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submit on February 4th 2009 in Legal