The Power of Double Trigger Severance Agreements

Let`s talk about double trigger severance agreements, shall we? I must admit, I`ve always found this topic to be quite fascinating. The providing protection for in event of change control company both and. It`s for to show commitment to while ensuring company`s are protected.

So, what exactly is a double trigger severance agreement? It`s a type of severance agreement that provides for a payout to an employee if they are terminated following a change in control of the company. In other words, it “triggers” a severance payment if two conditions are met: the change in control and the termination of the employee. It`s way ensure employees left in if company significant such merger acquisition.

Benefits of Double Trigger Severance Agreements

Now, let`s take a closer look at the benefits of double trigger severance agreements. Here few reasons both employers employees find be:

Benefits Employers	Benefits Employees
Provides clear structured for payouts	Offers protection event loss following in control
Can attract retain talent offering security	Encourages loyalty commitment company
Protects from legal over payments	Provides mind financial during times

As you can see, double trigger severance agreements can be mutually beneficial for both employers and employees. Provide level certainty security can valuable ever-changing of business.

Case Studies and Statistics

Let`s take a look at a few case studies and statistics to further illustrate the impact of double trigger severance agreements.

According to a study by the National Association of Stock Plan Professionals, over 60% of publicly traded companies offer some form of change-in-control protection to their executives and key employees. Demonstrates prevalence importance these of in world.

One case study story mid-sized company acquired larger Thanks double trigger severance employees acquired company able transition confidence, knowing had protection place. Helped minimize maintain during process.

Final Thoughts

Double trigger severance agreements are a powerful tool for both employers and employees. Provide level security protection can invaluable today`s and business. Offering and severance these help trust between and employees. Also as demonstration employer`s to workforce.

It`s clear Double Trigger Severance Agreements play role the of benefits governance. Continue to the landscape business, agreements undoubtedly remain vital for employers employees.

 

Frequently Asked Questions About Double Trigger Severance Agreements

Question	Answer
What is a double trigger severance agreement?	A Double Trigger Severance Agreement type employment that for severance in event change company termination employee`s.
What are the benefits of a double trigger severance agreement for employees?	Employees from protection financial in event change company termination employment.
What are the benefits of a double trigger severance agreement for employers?	Employers use double trigger severance as and tools, they provide sense and for in of.
How does a double trigger severance agreement differ from a single trigger agreement?	A single trigger agreement only requires one event, such as a change in control, to trigger severance benefits. A double trigger agreement requires both a change in control and the termination of the employee`s employment to trigger benefits.
Can a double trigger severance agreement be negotiated?	Yes, terms Double Trigger Severance Agreement be between employer employee best needs interests parties.
What should be included in a double trigger severance agreement?	A double trigger severance agreement should clearly outline the circumstances under which severance benefits will be provided, including the definition of a change in control and the terms of termination.
Are there any tax implications for double trigger severance agreements?	Yes, employer employee should aware potential implications benefits, seek advice mitigate negative.
How does the enforceability of a double trigger severance agreement vary by jurisdiction?	The enforceability Double Trigger Severance Agreement vary jurisdiction, so is consult legal familiar laws.
What happens if the terms of a double trigger severance agreement are violated?	If terms Double Trigger Severance Agreement violated, aggrieved may legal to enforce terms seek remedies.
How lawyer with or Double Trigger Severance Agreement?	A lawyer provide guidance representation employers employees negotiating, and Double Trigger Severance Agreements ensure are and.

 

Double Trigger Severance Agreement

In event certain occurring result termination employment essential both employer employee have and understanding terms. Agreement, into by between Employer Employee, sets terms conditions which may entitled benefits event double trigger termination.

Article I – Definitions	Article II – Severance Benefits	Article III – Double Trigger Event	Article IV – Governing Law
a. “Employer” shall mean [Employer Name]. b. “Employee” shall mean [Employee Name].	a. In the event of a double trigger termination, the Employee shall be entitled to severance benefits as outlined in Article II. b. The severance benefits shall be subject to the terms and conditions set forth in this agreement and any applicable laws and regulations.	a. A double trigger event shall occur when the Employee`s employment is terminated within [time period] following a change in control of the Employer. b. The change in control of the Employer shall be defined in accordance with the relevant provisions of the [applicable law or regulation].	This Agreement shall be governed by and construed in accordance with the laws of the [State/Country].