Executive Contracts
Sophisticated executive employment and service contracts for C-suite officers and senior leadership, balancing protective terms for the company with the personal deal-points that matter to senior talent.
Hiring or retaining a chief executive, chief technology officer, or general counsel requires a contractual framework that goes significantly beyond a standard employment agreement. The stakes on both sides are high: the company needs robust protections around IP ownership, post-termination restrictions, and misconduct definitions; the executive needs clarity on compensation structure, equity treatment, termination entitlements, and the conditions under which severance is triggered. Getting the balance wrong at the drafting stage creates costly disputes at exit, the most sensitive moment in any executive relationship.
GlobalB Law advises both companies and individual executives on the full spectrum of executive employment arrangements. For companies, we structure agreements that are legally enforceable across the relevant jurisdiction, align with board resolutions and corporate governance requirements, and integrate correctly with the cap table (where equity is part of the package). For executives, we review and negotiate incoming offers, flag the clauses that matter most, garden leave, bonus discretion, change-of-control protection, D&O indemnification, and ensure that the protections agreed in term sheets survive into the final signed document.
Jurisdictional complexity is a recurring theme in our executive work. A Turkish CEO appointed to run a Cayman-incorporated holding company may hold a service agreement governed by English law while also maintaining a separate Turkish employment relationship to preserve social security entitlements. A US-resident CTO hired by a Turkish parent may need a carefully structured arrangement to avoid inadvertent permanent establishment risk. We map these structures at the outset and design documentation that holds together across all relevant jurisdictions.
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What is the difference between an employment agreement and a service agreement for executives?
An employment agreement creates a subordinate employment relationship governed by labour law, in Türkiye, this means statutory protections, severance rights, and mandatory notice periods apply. A service agreement is typically used for board-level directors or consultants, creating a commercial relationship outside the scope of labour law. Many senior executives hold both: a service agreement at the holding company level and an employment agreement at the operating subsidiary.
What should a CEO's employment agreement cover that a standard contract does not?
At a minimum: a clearly defined authority scope and reporting line, specific KPI or performance targets tied to variable compensation, change-of-control clauses specifying what happens to equity and severance if the company is acquired, garden leave provisions preventing the executive from joining a competitor immediately on notice, and a carefully drafted 'cause' definition governing termination for misconduct, since the definition of 'cause' is frequently litigated.
How much notice and severance is a departing Turkish executive entitled to by law?
Under Turkish Labour Law, statutory notice periods range from two to eight weeks depending on tenure, and executives are entitled to statutory severance of 30 days' gross salary per year of service, capped at the annual maximum. Contractual enhancements above the statutory floor are common for senior roles. Importantly, the ground for termination, whether it constitutes 'just cause' under Article 25, determines whether severance is payable at all.
Can we include a non-compete clause in a Turkish executive's contract?
Yes, but it must comply with Articles 444-447 of the Turkish Code of Obligations: it must be in writing, limited in geographic scope and duration (maximum two years post-termination), and the executive must have a legitimate business interest to protect. Courts regularly scrutinise non-competes in executive contracts and will reduce or void provisions that are disproportionately broad.
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