--- title: "Good Counsel: Seal the Deal With an Employment Agreement" id: "14707" type: "post" slug: "good-counsel-seal-the-deal-with-an-employment-agreement" published_at: "2012-12-01T10:30:54+00:00" modified_at: "2026-03-15T19:15:15+00:00" url: "https://associationsnow.com/2012/12/01/good-counsel-seal-the-deal-with-an-employment-agreement/" markdown_url: "https://associationsnow.com/2012/12/01/good-counsel-seal-the-deal-with-an-employment-agreement.md" excerpt: "A solid employment agreement should cover five key topics, says lawyer Eileen Morgan Johnson." taxonomy_category: - "Executive Leadership" taxonomy_post_tag: - "AssociationsNow" - "Business" - "Contracts" - "employment agreements" - "Established CEO" - "Leadership" - "New CEO" taxonomy_content_format: - "Article" taxonomy_role: - "Association CEO / Executive Director" taxonomy_persona: - "Executive Leadership" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » Good Counsel: Seal the Deal With an Employment Agreement No two employment agreements are exactly the same. But whether you’re the hiring organization or the candidate for an executive position, you’ll want the contract sealing the deal to include these five critical components. 1. A detailed **position description** should outline what the employer expects of the employee. For a CEO, this includes management duties, number and title of direct reports, fundraising, lobbying, board relations, volunteer relations, and travel. Vague references to the position “as described in the association’s bylaws” or to “general duties of the position” are insufficient to communicate to the employee and the supervisor what is expected. The position description may refer to another document, such as a strategic plan, and it should be reviewed and edited each time a contract is renewed or replaced with a new contract. 2. **Compensation** includes base salary, any bonus opportunities, and all benefits. Sometimes contracts will specify the increase that the employee can expect to receive each year as a percentage of base salary. Identify taxable fringe benefits. 3. The agreement should describe the **supervision** structure, explaining to whom the employee reports, as well as how, and how often, the reporting is to occur. A CEO agreement should specify whether the CEO reports to the entire board, the executive committee, or the board chair/president. 4. The **performance review** process should be briefly explained. If the employee’s performance will be measured against specified goals or achievements, the agreement should say so specifically. 5. A good employment agreement will cover **termination**, including how both parties may end the agreement with and without cause. It should also state whether the employee will receive the association’s typical severance package (if there is one) or whether a special severance package has been negotiated. **Compensation** includes base salary, any bonus opportunities, and all benefits. Sometimes contracts will specify the increase that the employee can expect to receive each year as a percentage of base salary. Identify taxable fringe benefits. The agreement should describe the **supervision** structure, explaining to whom the employee reports, as well as how, and how often, the reporting is to occur. A CEO agreement should specify whether the CEO reports to the entire board, the executive committee, or the board chair/president. The **performance review** process should be briefly explained. If the employee’s performance will be measured against specified goals or achievements, the agreement should say so specifically. A good employment agreement will cover **termination**, including how both parties may end the agreement with and without cause. It should also state whether the employee will receive the association’s typical severance package (if there is one) or whether a special severance package has been negotiated. Candidates for executive positions should not be shy about discussing the terms of their employment and requesting a written agreement. Taking the time to fully document both parties’ expectations can save trouble down the road. [Eileen Morgan Johnson, CAE](https://associationsnow.com/author/eileen-morgan-johnson-cae/) Eileen Morgan Johnson, CAE, is a partner with Whiteford, Taylor & Preston LLP, in Washington, DC. She is cochair of the firm’s Associations, Nonprofits, and Political Organizations Section. [More articles by this author](https://associationsnow.com/author/eileen-morgan-johnson-cae/) Tags: [#Business](https://associationsnow.com/tag/business/) [#Contracts](https://associationsnow.com/tag/contracts/) [#employment agreements](https://associationsnow.com/tag/employment-agreements/) [#Established CEO](https://associationsnow.com/tag/established-ceo/) [#Leadership](https://associationsnow.com/tag/leadership/) [#New CEO](https://associationsnow.com/tag/new-ceo/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## You Might Like - [VideoThe Graham Report: New CEO Trends in 2024January 31, 2025](https://associationsnow.com/2025/01/31/the-graham-report-new-ceo-trends-in-2024/) - [VideoThe Graham Report: How to Land a CEO JobJanuary 31, 2025](https://associationsnow.com/2025/01/31/the-graham-report-how-to-land-a-ceo-job/) - [VideoASAE Research Foundation and MPI Foundation on Neurodiversity in AssociationsDecember 15, 2025](https://associationsnow.com/2025/12/15/asae-research-foundation-and-mpi-foundation-on-neurodiversity-in-associations/) - [ArticleWhat Successful CEO Transitions Look LikeJuly 25, 2025](https://associationsnow.com/2025/07/25/what-successful-ceo-transitions-look-like/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2012%2F12%2F01%2Fgood-counsel-seal-the-deal-with-an-employment-agreement%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !