Negotiation and settlement

Dr Aron Mifsud Bonnici

Your exit terms negotiated with your employer or its lawyers, and the settlement agreement drafted or reviewed line by line.

Who it is for

Executives and senior managers who want their exit terms negotiated for them, or a proposed agreement drafted or reviewed. I act for the executive in these matters, not for the employer.

The problem

A senior exit is negotiated on several fronts at once: money, timing, covenants, reputation and, in a regulated role, the regulator. A good figure in one place can be undone by a clause somewhere else.

What it covers

Strategy
What you want, what you will trade for it, and the point at which you would stop negotiating.
Negotiation
Direct negotiation with the employer or its counsel, in writing and on calls.
Settlement agreement
Drafted or reviewed line by line, so that what was agreed is what is signed.
Announcement and reference
The words both sides will use about the departure, and the reference you will receive.
Covenants
Release of restrictive covenants, or limits on how long and how far they apply.
Regulatory and handover arrangements
The notification to the MGA or MFSA where it applies, and an orderly handover of the role.

Terms used here: compromise, the Civil Code's name for a settlement, and the certificate of service your employer must give on request. Case notes: a release signed at the dismissal meeting, valuing future loss and a diverted business opportunity.

Common questions are answered in the FAQs.

How it runs

Hourly, agreed before work starts. Mostly remote, with meetings when they help.

  1. 1.

    Strategy

    We agree the goals, the order in which to raise them, and what you will not give up.

    Walk-away point. The least you will accept before you stop negotiating.

  2. 2.

    Opening

    I open the conversation with the employer or its lawyers. Settlement correspondence is usually marked "without prejudice", but that label does not protect every communication automatically, so what is put in writing is still chosen with care.

    Without prejudice. A label used in settlement talks so that what is said is not later used as evidence. Its protection has limits.

  3. 3.

    Negotiation

    Notice, bonus and deferred pay, unvested shares, covenants, the announcement and the reference are negotiated together, not one by one.

  4. 4.

    Settlement agreement

    The agreement is drafted or reviewed, with tax points flagged for your adviser, then signed.

    Full and final settlement. A clause that ends claims arising from the employment, usually in exchange for the payment.

Next step

Send a short message saying where things stand, what has been offered and whether there is a deadline.

Contact me