According to Sirkin, there are three common types of triggers: a “single trigger” provides for a leader who resigns at the time of the transition. A “double trigger” occurs when an officer is terminated for a predetermined period after the change of control comes into effect. This is, says Sirkin, the most popular trend today. Finally, there is a “trigger and a half” when a leader stops after a predetermined time. If a well-maintained school is converted into an academy status with a TOCA, it must therefore enter into a new agreement with the third party. The risk of not doing so, or an Academy Trust that claims to grant a TOCA, is that a lease is granted accidentally with all the security that prevents the Academy Trust from terminating the agreement and restoring ownership of that part of the school. Therefore, it is important that schools attract the existence of OCD to their lawyers when they convert, and to Academy Trusts, to ensure that academies do not reuse old TOCA agreements after conversion. Regardless of the size of an organization, executives could be subject to dual responsibilities, relocations or downgrades when merging or taking over a business – totally unfavourable results. “However, by changing control, the executive might be better able to find other solutions to the problem than simply taking the business further down the ground,” Tyler suggests. All in the day According to William Kanzer, founder of Chicago-based executive research consulting firm Kanzer Associates, executives should negotiate at an early stage changes to control rules, preferably when renewing an offer.
“If a person is already employed and has nothing in their letter of offer on a change in the control regime, it is unlikely that the company will guarantee anything to the employee in the future,” says Kanzer. “Of course, the older the leader, the more likely it is that changes will occur with final agreements rewritten.” What`s being negotiated? Several factors are negotiated as part of an amendment plan, the most common salary options, bonuses and stock options. Other contentious issues may be medical benefits and executive benefits. But even before these terms are discussed, it is necessary to agree on the types of “triggers” that would enable the use of such a provision. OCD can be a useful tool in the armor of well-maintained schools when it comes to using their website. However, as there is no equivalent for Academy Trust Companies, it is important to get advice when converting to ensure that a third party does not end with an extended agreement.