Smooth Transitions

Smooth Transitions

Addressing the Legal issues arising from the departure of employees & Business breakups

Category Archives: Executive Compensation

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Breaking Down the Texas Non-Compete Case

Posted in Executive Compensation, Hiring and Firing, Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Recent Cases
  There is a good article from the Houston Chronicle this week outlining a non-compete dispute between two former compensation consultants and their former employer.  The facts are pretty standard fare for this type of dispute: professionals have some type of non-compete agreement with former employer; former employer finds out professionals are leaving in violation… Continue Reading

Arbitration – BofA SEC Settlement – NY AG Lawsuit

Posted in Arbitration, Executive Compensation
A couple of quick hits on issues previously addressed: Arbitration BofA is one of a number of banks to drop mandatory arbitration provisions in their agreements with credit card holders. It follows JP Morgan Chase which stopped referring credit card disputes to arbitration last month.  The tide seems to be turning against arbitration in the consumer… Continue Reading

An Empirical Analysis of Non-Competes

Posted in Executive Compensation, Non-Compete Agreements
                                        Mark Garmaise, an Associate Professor at UCLA’s Anderson School of Management, recently published "Ties that Truly Bind: Non-Competition Agreements, Executive Compensation and Firm Investment."  Garmaise concludes that enforcement of non-competes promotes executive stability, results in reduced executive compensation, shifts compensation towards a greater use of salary, and reduces research and development spending.  The paper also… Continue Reading

Merrill Lynch Bonuses – Cuomo Part II

Posted in Executive Compensation
Since my entry two weeks ago, New York Attorney General Andrew Cuomo chimed in again on Merrill Lynch 2008 bonuses in a letter (.pdf) to Congressman Barney Frank, Chairman of the House Committee on Financial Services.  The letter does not name names, but outlines numerous multi-million dollar payments to Merrill executives with the top 149 receiving… Continue Reading