Published on: February 14, 2020
Topics: Executive Pay Legislation and Regulation, Executive Pay Plan Design, Severance and Change in Control
The topic of restrictive covenants, or most commonly, non-compete agreements, has received significant public attention in the recent past. The topic has been addressed by the press and discussed by elected officials, policy makers, and regulators at the state and federal level. Following a workshop on Jan. 9, 2020, the FTC requested public comments on potential strategies of addressing the issue.
In light of these developments, the Center conducted a survey from Jan. 16 - 23, 2020 on the use of restrictive covenants in award agreements, severance agreements, and/or employment contracts. The survey specifically focused on actions taken by an individual post-employment termination, rather than during employment (which would be covered by a clawback policy). In total, 85 Subscribers responded to the survey. A brief summary is outlined below, followed by the comprehensive survey results.