employment offer

I recently left a small firm due to the unethical dealings of the president. When I took the position with the company, I was promised in an "Employment Proposal" the following;

"...would like to think of you as a partner of the comany, and not just an employee. Therefore, after six months of continual service, at the descretion of the company, we would like to offer stock options in an amount to be determined by the company,..."

"...in 2000/2001 will be initiating an incentive bonus set initially at 5% of base salary for employees, and individual bonus amounts for the executive team,..."

At three different occasions during my 2 years of employment I was verbally promised equity in regards to the first statement.

After leaving, I have tried to enforce both of the above claims with this company to no avail. What should be my next step?

1 answer  |  asked Jul 17, 2001 6:22 PM [EST]  |  applies to Ohio

Answers (1)

Neil Klingshirn
How to decide whether to pursue legal action

First, figure out what the promised equity stake is worth if delivered as promised. If it is not worth anything, do not pursue it.

Second, if worth pursuing, consult with an attorney to evaluate your legal options. Almost every attorney qualified to handle business/employment disputes will charge a modest consultation fee. We charge $200, which is, I think, on the high end. If this cost is prohibitive, then do not pursue the claim.

A consultation will tell you what your third step should be, if any. Some attorneys will pursue claims such as yours on a contingency fee basis. This is a valid question for you before you pay for a consultation (i.e., do you accept cases on a contingency basis?) Our firm does. Be aware that, even with a contingency fee arrangement, you will still be resonsible for the costs of the action, such as expert fees and deposition costs. This can run several thousand dollars in a matter such as yours, sometimes more.

I hope this helps.



posted by Neil Klingshirn  |  Jul 18, 2001 08:28 AM [EST]

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