Compensation Agreement

The employer

Is the employer a business or an individual?

Employer's full legal name

For a business, use its registered name, including "LLC" or "Inc." if it has one.

Street address

City

State

ZIP code

Email optional

Used for written notices.

Phone optional

The employee

Employee's full legal name

Street address

City

State

ZIP code

Email optional

Phone optional

Effective date and position

When does the new compensation take effect?

The first day the pay described in this agreement applies. It can be up to a year before or after today.

Employee's job title on the effective date

For example, "Senior Account Executive."

Is this a new title for the employee, such as a promotion?

Yes No

Does this agreement replace an earlier written compensation plan, offer letter pay terms, or similar arrangement?

Yes No

If you answer No, this agreement still controls over any earlier pay terms that conflict with it from the effective date.

Base pay

How is the employee's base pay set?

How often is pay issued?

Date of the next scheduled pay review optional

A review is not a promise of an increase. Leave blank if there is no scheduled review.

Incentive bonus

Will the employee be eligible for an incentive bonus?

Yes No

Commission

Will the employee earn commission?

Yes No

Incentive plan changes and recovery

Equity, allowances and retention bonus

Does the employee hold, or will the employee receive, an equity award such as stock options or restricted stock?

Yes No

The agreement only notes that any award is governed by its own plan and award documents. It does not grant or describe equity.

Will the employee receive a phone, car or remote-work allowance?

Yes No

Will the employee receive a retention bonus for staying until a set date?

Yes No

Final terms

Anything else both sides agreed to about compensation? optional

Which state's law should govern this agreement?

Usually the state where the employee works.

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The employer

The employee

Effective date and position

Base pay

Incentive bonus

Commission

Incentive plan changes and recovery

Equity, allowances and retention bonus

Final terms

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