As an investment advisor, your job revolves around helping clients make sound financial decisions for their future. But what about ensuring your own financial security and career longevity? This is where an investment advisor employment agreement comes into play.
An employment agreement is a legal document that outlines the terms and conditions of your employment with a firm. It sets out the expectations, obligations, and rights of both parties, and serves as a foundation for the employment relationship.
Here are some key aspects to consider when drafting or reviewing an investment advisor employment agreement:
Compensation: Your salary, bonuses, and other forms of compensation should be clearly defined in the agreement. It’s important to understand how your pay is calculated, what performance metrics are used, and whether there are any tiers or thresholds to meet.
Restrictive covenants: These are clauses that limit your ability to compete with the firm or solicit its clients for a certain period of time after your employment ends. It’s important to understand the scope and enforceability of these clauses, as they can significantly impact your future job prospects.
Termination: The agreement should spell out how and when your employment can be terminated, whether it’s for cause, without cause, or due to a change in control or restructuring. It’s also important to understand what happens to your outstanding compensation and benefits in the event of termination.
Confidentiality and non-disclosure: As an investment advisor, you likely have access to sensitive client information and proprietary firm data. The agreement should contain provisions that require you to maintain confidentiality and prohibit you from sharing or using this information outside of the firm.
Benefits and perks: Your agreement should clearly spell out what benefits and perks you are entitled to, such as health insurance, retirement savings plans, vacation time, and professional development opportunities.
As an investment advisor, your employment agreement is a vital tool for protecting your interests and ensuring a successful career. Working with an experienced attorney or HR professional can help you navigate the complexities of drafting or reviewing this important document.