The Director Employment Contract is a crucial document used when appointing directors to Swiss companies, whether in executive or non-executive capacities. This agreement must comply with Swiss law, particularly the Swiss Code of Obligations and relevant corporate governance requirements. It serves to formalize the relationship between the company and the director, detailing their appointment terms, duties, remuneration, and obligations. The contract includes specific provisions required under Swiss law regarding social security, pension arrangements, and corporate responsibilities. It's particularly important as it combines elements of both employment law and corporate governance, addressing the unique position of directors who are both employees and corporate officers. The document should be used when appointing new directors or updating terms for existing directors, ensuring all aspects of the relationship are clearly defined and legally compliant.
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1. Parties: Identification of the company and the director, including full legal names and addresses
2. Background: Context of the appointment and any relevant corporate authorizations
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Details of the director position, effective date, and duration of appointment
5. Duties and Responsibilities: Comprehensive outline of director's duties, including statutory obligations and specific role requirements
6. Time Commitment: Expected working hours and availability requirements
7. Location: Primary work location and travel requirements
8. Remuneration: Base salary, bonus structure, and other financial benefits
9. Benefits: Insurance, pension, and other benefits provided
10. Expenses: Policy on business expenses and reimbursement
11. Vacation: Annual leave entitlement and conditions
12. Confidentiality: Obligations regarding company confidential information
13. Intellectual Property: Assignment of IP rights and related obligations
14. Data Protection: Handling of personal data and privacy obligations
15. Non-Competition: Post-employment restrictions and competition limitations
16. Termination: Grounds and procedures for contract termination
17. Return of Property: Obligations regarding company property upon termination
18. Governing Law: Confirmation of Swiss law application and jurisdiction
19. General Provisions: Standard boilerplate clauses including severability and entire agreement
1. Director's Insurance: Details of D&O insurance coverage, used when the company provides separate insurance
2. Share Options: Terms of any share option or equity participation schemes, included when applicable
3. International Travel: Specific provisions for international assignments or travel, needed for multinational companies
4. Additional Directorships: Provisions regarding holding other board positions, important for non-executive directors
5. Change of Control: Provisions relating to company ownership changes, relevant for listed companies
6. Garden Leave: Provisions for placing the director on garden leave, useful for sensitive positions
7. Signing Authority: Specific powers of attorney and signing rights, needed for executive directors
8. Performance Metrics: Detailed performance evaluation criteria, useful for performance-based compensation
9. Compliance Obligations: Specific regulatory compliance requirements, important for regulated industries
1. Schedule 1 - Job Description: Detailed outline of specific responsibilities and duties
2. Schedule 2 - Remuneration Package: Detailed breakdown of all compensation elements
3. Schedule 3 - Bonus Scheme: Details of performance-based compensation calculations
4. Schedule 4 - Company Policies: List of applicable company policies and procedures
5. Schedule 5 - Benefits Summary: Detailed description of all benefits and allowances
6. Appendix A - Share Option Terms: Detailed terms of any share option or equity participation
7. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations and procedures
8. Appendix C - Corporate Authority Matrix: Overview of director's decision-making authority levels
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