Directors' service agreements and regulatory issues

Resource type: Practice note

Status: Maintained

Jurisdictions: England, Scotland, Wales

This note considers the issues involved in negotiating and drafting directors' service agreements, including pay and benefit provisions and how to protect the company on termination of employment. The note also deals with the regulatory framework affecting the employment terms of listed company directors.

PLC Employment

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Resource information

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Resource ID: 0-200-3271
Products: PLC UK Corporate, PLC UK Employment, PLC UK Law Department, PLC UK Pensions, PLC UK Public Sector, PLC UK Share Schemes & Incentives
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Company Law, Governance and Regulatory Matters: IncentivesCompany Law, Governance and Regulatory Matters: Incentives (http://finance.practicallaw.com/3-205-7168)
Company administration and meetingsCompany administration and meetings (http://finance.practicallaw.com/4-103-1145)
Contracts of EmploymentContracts of Employment (http://finance.practicallaw.com/9-103-1223)
DirectorsDirectors (http://finance.practicallaw.com/7-200-0622)
Employment Law Issues: IncentivesEmployment Law Issues: Incentives (http://finance.practicallaw.com/7-205-7171)
Pensions and EmploymentPensions and Employment (http://finance.practicallaw.com/4-379-8239)

Practice note: overview

A guide to PLC's UK corporate governance materials A guide to PLC's UK corporate governance materials (http://uk.practicallaw.com/topic3-502-1005)
Directors: issues for employment lawyers Directors: issues for employment lawyers (http://uk.practicallaw.com/topic1-376-4735)
Directors: toolkit for employment lawyers Directors: toolkit for employment lawyers (http://uk.practicallaw.com/topic0-509-2155)
The Combined Code: overview The Combined Code: overview (http://uk.practicallaw.com/topic7-107-4261)

Practice notes

Bonuses Bonuses (http://uk.practicallaw.com/topic1-200-2129)
Calculating pensions loss on termination of employment Calculating pensions loss on termination of employment (http://uk.practicallaw.com/topic0-209-0956)
Directors' duties: corporate governance influences Directors' duties: corporate governance influences (http://uk.practicallaw.com/topic6-107-3870)
Directors' remuneration: corporate governance issues Directors' remuneration: corporate governance issues (http://uk.practicallaw.com/topic8-107-4675)
Directors' service contracts: disclosure, notice periods and compensation for loss of office Directors' service contracts: disclosure, notice periods and compensation for loss of office (http://uk.practicallaw.com/topic2-523-1184)
Directors' service contracts: notice periods and compensation for loss of office Directors' service contracts: notice periods and compensation for loss of office (http://uk.practicallaw.com/topic2-107-3872)
Dismissing a senior executive Dismissing a senior executive (http://uk.practicallaw.com/topic2-200-2162)
Pensions for employment lawyers Pensions for employment lawyers (http://uk.practicallaw.com/topic0-200-2530)
Restrictive covenants and garden leave Restrictive covenants and garden leave (http://uk.practicallaw.com/topic8-200-3267)

Standard documents

Annotated UK Corporate Governance Code: Section B: Effectiveness Annotated UK Corporate Governance Code: Section B: Effectiveness (http://uk.practicallaw.com/topic0-507-0304)
Director's service agreement Director's service agreement (http://uk.practicallaw.com/topic0-202-3014)
Directors' general duties under the Companies Act 2006: briefing for directors: 1 October 2007 Directors' general duties under the Companies Act 2006: briefing for directors: 1 October 2007 (http://uk.practicallaw.com/topic6-376-4276)
Employment contract for a senior employee (long-form) Employment contract for a senior employee (long-form) (http://uk.practicallaw.com/topic8-386-4393)
Letter of appointment for a non-executive director Letter of appointment for a non-executive director (http://uk.practicallaw.com/topic2-200-3901)

Standard clauses

Director clauses (private and listed companies) Director clauses (private and listed companies) (http://uk.practicallaw.com/topic7-200-2112)
Payment in lieu of notice clause Payment in lieu of notice clause (http://uk.practicallaw.com/topic3-200-2114)

Glossary

Combined Code Combined Code (http://uk.practicallaw.com/topic9-107-5943)
Constructive dismissal Constructive dismissal (http://uk.practicallaw.com/topic8-200-3106)
Defined benefit (DB) pension scheme Defined benefit (DB) pension scheme (http://uk.practicallaw.com/topic0-107-7545)
Executive director Executive director (http://uk.practicallaw.com/topic8-107-6580)
Final salary scheme Final salary scheme (http://uk.practicallaw.com/topic2-107-5748)
FURBS FURBS (http://uk.practicallaw.com/topic1-107-6630)
Gross misconduct Gross misconduct (http://uk.practicallaw.com/topic7-200-3338)
Liquidated damages Liquidated damages (http://uk.practicallaw.com/topic7-107-6769)
Non-executive director Non-executive director (http://uk.practicallaw.com/topic1-107-6531)
Occupational pension scheme Occupational pension scheme (http://uk.practicallaw.com/topic8-107-6900)
Payment in lieu of notice (PILON) Payment in lieu of notice (PILON) (http://uk.practicallaw.com/topic2-200-3406)
Permanent health insurance (PHI) Permanent health insurance (PHI) (http://uk.practicallaw.com/topic0-200-3412)
Personal pension scheme Personal pension scheme (http://uk.practicallaw.com/topic4-107-7001)
UURBS UURBS (http://uk.practicallaw.com/topic1-200-3628)

External resource

Best practice on executive contracts and severance - a joint statement by the ABI and NAPF Best practice on executive contracts and severance - a joint statement by the ABI and NAPF (http://uk.practicallaw.com/topic8-203-4985)

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