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Executive Director Employment Contract

Executive Director Employment Contract Template for Denmark

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Executive Director Employment Contract

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Document background
The Executive Director Employment Contract is a crucial document used when appointing senior executives in Danish companies. It is specifically designed to comply with Danish corporate law requirements, particularly the Danish Companies Act (Selskabsloven), while addressing the unique position of executive directors who typically fall outside standard employment protection legislation. This contract type is essential for establishing clear terms of employment, corporate authority, and responsibilities for executive directors (direktører), including remuneration structures, performance expectations, and termination provisions. It should be used when appointing new executive directors or updating terms for existing executives, and typically requires board approval under Danish corporate governance requirements.
Suggested Sections

1. Parties: Identification of the company and the executive director, including company registration details and personal information

2. Background: Context of the appointment and any relevant corporate approvals

3. Definitions: Key terms used throughout the agreement

4. Appointment and Position: Role, title, reporting lines, and board positions

5. Duties and Responsibilities: Key responsibilities, authority limits, and compliance with corporate governance

6. Place of Work: Primary workplace location and travel requirements

7. Working Hours: Expected time commitment and flexibility requirements

8. Remuneration: Base salary, review mechanisms, and payment terms

9. Benefits: Standard benefits package including pension, insurance, and car allowance

10. Bonus and Incentives: Performance-based compensation structure

11. Holidays: Annual leave entitlement and holiday pay arrangements

12. Illness and Absence: Sick leave terms and notification requirements

13. Expenses: Business expense reimbursement policy

14. Confidentiality: Protection of company confidential information

15. Intellectual Property: Ownership of work products and innovations

16. Data Protection: GDPR compliance and personal data handling

17. Termination: Notice periods and termination grounds

18. Post-Termination Obligations: Return of company property and ongoing obligations

19. Governing Law and Jurisdiction: Danish law application and dispute resolution

Optional Sections

1. Share Options: Details of share option schemes, used when equity-based compensation is offered

2. Non-Compete: Post-employment competition restrictions, used when protecting market position is crucial

3. Non-Solicitation: Restrictions on approaching employees/clients, used in client-facing roles

4. International Travel: Specific provisions for extensive international travel, used for global roles

5. Subsidiary Board Positions: Terms for additional group company positions, used in complex corporate structures

6. Relocation Package: Relocation assistance terms, used when hiring from abroad

7. Change of Control: Special rights/obligations upon ownership change, used in listed/acquisition target companies

8. Garden Leave: Terms for paid leave during notice period, used in sensitive positions

Suggested Schedules

1. Schedule 1 - Remuneration Package: Detailed breakdown of all compensation elements

2. Schedule 2 - Bonus Scheme Rules: Specific performance metrics and calculation methods

3. Schedule 3 - Share Option Terms: Detailed terms of any share-based incentives

4. Schedule 4 - Job Description: Detailed outline of duties and responsibilities

5. Schedule 5 - Company Policies: Key corporate policies applicable to the executive

6. Schedule 6 - Benefits Details: Comprehensive list of benefits and their terms

7. Appendix A - Board Resolution: Copy of board approval for the appointment

8. Appendix B - Power of Attorney: Scope of executive's signing and representation rights

Authors

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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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