Vedder Thinking | News Stewart Reifler Discusses Loosening Restrictions on Non-Compete Agreements in the Wall Street Journal
Stewart Reifler, a Vedder Price Shareholder and head of the firm’s Executive Compensation group in New York, was quoted in an August 12, 2013 Wall Street Journal article titled “Companies Loosen the Handcuffs on Non-Competes; Companies are making it easier for senior managers to jump ship, though it can be costly.”
The article describes the changing landscape of restrictive covenants, particularly as they pertain to high-ranking executives in large companies. These documents, designed to protect customer lists and trade secrets, are usually a standard section of executive employment agreements however, many corporations are now lessening the duration of the covenants and are opting for more creative solutions. “No one monitors the prevalence of these restrictive documents. But companies are using non-competes these days to justify lucrative employment contracts or certain kinds of severance and equity-pay arrangements—as well as to keep executives from jumping ship,” says Mr. Reifler.
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