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Executive Employment Agreement for Management Companies (NAICS 55)

Management of Companies and Enterprises · NAICS 55 · Employment Agreement (Executive)

An executive employment agreement is a critical document for management companies (NAICS 55) that oversee subsidiaries or provide strategic direction to portfolio businesses. This agreement clearly defines the executive's role, compensation, and performance expectations, while protecting the company's confidential information and client relationships. It also helps align the executive's interests with the long-term success of the enterprise. Whether you are hiring a new CEO or formalizing an existing arrangement, this customizable template covers essential terms to reduce ambiguity and legal risk.

When you need this document

When hiring a new executive (CEO, President, CFO) for your management company.
When promoting an internal manager to an executive role with expanded duties.
When renewing or updating an existing executive's contract to reflect new compensation or responsibilities.
When acquiring or merging with another company and need to secure key leadership.
When formalizing the terms of employment for a family-member executive in a closely held management company.

What the generated draft includes

Position and duties tailored to management company oversight
Compensation structure: base salary, bonus, and equity incentives
Benefits and perquisites
Termination and severance provisions
Restrictive covenants: non-compete, non-solicitation, confidentiality
Indemnification and insurance provisions

Frequently asked questions

Why do management companies need a special executive employment agreement?

Management companies often have complex structures with subsidiaries and portfolio companies. An executive agreement must clearly define the executive's authority and duties across these entities, and address conflicts of interest and fiduciary duties. This template is tailored to those nuances.

Are non-compete clauses enforceable?

Enforceability varies by state. Many states require that non-compete clauses be reasonable in duration, geographic scope, and business purpose. This template includes a non-compete clause but you should have it reviewed by local counsel to ensure compliance.

Can I customize the equity compensation terms?

Yes, the form includes an optional equity section where you can specify the type of award, number of shares, and vesting schedule. However, equity grants often require board approval and compliance with securities laws, so consult your legal advisor.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.