Senior Executive Exit Strategy Advice for Businesses

Senior executives often have complex contracts, access to sensitive information, and influence over key relationships. Their departure can impact business continuity, reputation, and legal risk—so it must be managed with care and precision.

You should review:

• The executive’s service agreement
• Bonus, equity, and pension arrangements
• Restrictive covenants (e.g. non-compete, non-solicitation)
• Director/shareholder responsibilities
• Any ongoing investigations or performance concerns

Yes, if the contract allows. Garden leave can help protect business interests by keeping the executive away from clients, staff, and sensitive information during the notice period.

A settlement agreement is a legally binding document used to resolve employment disputes or formalise an agreed exit. It typically includes:

• A severance package
• Waiver of claims
• Confidentiality and non-disparagement clauses
• Post-termination restrictions

It’s commonly used to avoid litigation and ensure a clean break.

You can protect your business by:

• Enforcing restrictive covenants
• Securing return of company property and data
• Communicating the exit professionally to stakeholders
• Monitoring compliance with post-termination obligations

Yes, but you must follow a fair and lawful process. This includes investigation, disciplinary procedures, and consideration of contractual terms. Legal advice is essential to avoid wrongful or unfair dismissal claims.

Risks include:

• Employment Tribunal claims
• Breach of contract disputes
• Reputational damage
• Loss of clients, staff, or investor confidence

Absolutely. Early legal advice helps you assess risks, structure the exit, and negotiate terms that protect your business and reputation.

Yes. In some cases, a phased handover or consultancy arrangement may be appropriate to ensure continuity and knowledge transfer.

Possibly. If the executive is a director or shareholder, you may need formal approval or follow specific procedures under company law or shareholder agreements.