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Protecting the executives
Preamble
The life of an executive is fraught with risks of all kinds; and these do not cease to increase.
Certain risks concern the individuals directly : executives and their families. Other risks put in danger their own property and resources : real estate or personal estate.
These risks are related to hazards of personal life (health, accident, assistance, dependence, pension, death), or to the professional life developments, at each career step (recruitment, change of perimeter, mobility, merger, acquisition, breach of contract, unemployment) or because of the exerted responsibilities (civil risk or penal risk).
In order to feel stronger, it is necessary to identify these risks, to evaluate them and to anticipate them reasonably. The higher the threats, the higher the protection systems. The executive needs to protect himself and to protect his family, his team, and his company.
The executives legitimately give attention to the protection of their property and resources; but the protection of individuals is an even more fundamental stake.
To guide a professional development
Each career step (recruitment, change of perimeter, national or international mobility), each change of environment (reorganization, merger, acquisition, takeover) present a risk which can be managed in a win-win process.
Each step, and in particular recruitment, must be the opportunity of paying a detailed attention to the protection of executives, and not exclusively to the remuneration issues. The executives must be regarded with consideration as entrepreneurs.
To improve the insurance coverage
The collective insurance systems are deteriorating. Therefore this coverage today concerns the company AND the individual liability.
The executive must take care of ensuring his family against the various risks related to hazards of life (medical, check up, assistance), while paying a special attention to major risks (disability, surgery, handicapped children, dependence, death).
The pension period is lengthening, and the replacement income fall.
If the standard of living is to be preserved, it is advisable to anticipate and carefully prepare the final stage of career within the framework of the company or on a purely individual basis : to make an individual pension assessment, to validate the entitlements, to analyze the output of possible repurchase of retirement entitlements, to optimize the retirement date, to identify other opportunities to improve the pension, to know the amount of the survivor's pension, and to be guided in the tiresome formalities when retiring.
To insure oneself against civil risks
In a company, they are three types of civil risks :
- those linked to the personal liability of executives, in particular in case of risks related to their contractual commitments.
For example : responsibility towards their shareholders or partners. - those linked to the professional responsibility of executives, in particular in case of risks related to their business operations.
For example : responsibility towards their customers. - those incurred within the framework of their management.
For example : responsibility towards their employees.
The best protection supposes to take out indispensable guarantees on the appropriate advices of a professional.
To move away the penal risk
The penal risk is hardly insurable (depending on countries). But it is generally possible and suitable to organize his company in delegating to line managers the responsibilities which concern their perimeters.
These delegations must respect strict conditions to which it is essential to comply with.
To make a successful breach of contract
In Europe and North America, companies entered the era of the "ephemeral" executive. The executives find themselves from now on on ejection seats.
Therefore it is preferable to anticipate and carefully prepare the breach of contract, in order to optimize the golden parachute, and transform this stage into a new opportunity.
Multiple devices can be considered, while respecting the financial and management constraints of the company : parachute, adapted notice period, non competition clause, tailor made outplacement, preservation of pension rights, unemployment insurance for company officers...