Executive Agreement

This Executive Agreement allows a company to employ a person as an executive, which generally means a non-executive director.

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Last updated January 21, 2025

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Suitable for Australia

Executive Agreement

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What is a executive agreement?

An executive agreement is a legal contract between a company and an individual employed as an executive, typically a non-executive director, outlining roles, responsibilities, and terms of employment.
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When should you use a executive agreement?

Use a executive agreement when hiring someone as an executive employee, rather than as an independent director, to clearly define employment terms, responsibilities, and protections for both parties.
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What should be in a executive agreement?

A executive agreement should include details about responsibilities, remuneration, reporting, insurance, confidentiality, restraints, and other general employment terms relevant to the executive's role.
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Frequently asked questions

How does this differ from a standard director agreement?

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Does signing this agreement make someone a company director?

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What key protections does the agreement offer the executive?

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Are there any risks for the company in using this agreement?

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What authorisations are required before signing?

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What steps should be taken after signing?

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Is this agreement valid in all Australian states and territories?

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View Sample Executive Agreement

Executive Agreement
risk level indicator at Medium level

The Legal Risk Score of a Executive Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • Directors are given a range of indemnities and powers, which can be a burden on the running on the company.
  • The director will be non-independent and that may affect their trust and decision making.
  • The director may have different rights and obligations to other directors, which may cause tension.

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