Starting your own investment firm requires you to ensure you have a good team working with you. One of the ways you can do this is by offering an attractive executive compensation package. You must ensure that your firm can comfortably handle what you’re offering.
You should remember that some people will try to negotiate the terms of their contract. This is normal, but you must be sure that you’re only doing what your firm can stand behind. Once there’s an employment contract in place, the company is bound by the terms it agreed to.
What will you include in the package?
There are many things that you may decide to offer in the employment contract. You must include the pay structure, but there are other things that you might choose to offer. These include:
- Membership fees for professional associations
- Annual incentives or bonuses
- Benefits related to higher education
- Travel compensation
- Wardrobe stipend
- Health club membership
It’s best to have everything clearly outlined in the contract. You don’t want anyone to get confused about what they’re supposed to receive. Remember to update the contract to meet negotiated terms if applicable.
You should also include standard of conduct terms in the contract. Your executives need to know what you expect out of them. It should be clear that they have a fiduciary duty to the clients at the firm. A non-compete and a non-disclosure clause might also be necessary.
Taking the time to have someone check the wording in the employment contracts for your investment firm is crucial. You must ensure that your company is protected by these contracts if you ever need to enforce one.