Special Concerns:
Financial Traders
& Analysts

YOUR CONCERNS

Executive Employment Executive Compensation Executive Severance Executive Negotiation   SPECIAL CONCERNS SARBANES-OXLEY CLAIMS DISCRIMINATION/HARASSMENT FINANCIAL TRADERS & ANALYSTS FEDERAL "WHISTLE-BLOWER" LAWSUITS

Those employed in the securities industry know all too well that, at least for them, it is essentially misnamed, as it is among the most "insecure" industries to work in. More than most industries, it is prone to periodic — and often dramatic — swings in fortunes. Also, while it is founded upon a relation of trust, to ensure honesty and full disclosure it is elaborately bound by multiple layers of regulation and law. And there is traditionally very little loyalty between employers and employees: as the saying goes, "You are only as good as your last trade."

Still, while the risks are great, so are the rewards: opportunities for significant compensation and rapid advancement exist in the securities industry like nowhere else. In light of the very significant risks and rewards, and its workplace peculiarities, those employed in the securities field - and most especially traders and analysts — face special concerns related to their employment.

In negotiating new employment for traders and analysts, we are generally faced with the task of transforming a "Welcome Aboard" letter, intentionally vague and simplistic, into a clear commitment which provides secure compensation upon acceptable terms of employment. Traders and analysts face the employment-transition risks faced by all others, but have special concerns, as well. These include sign-on payments to cover bonuses or stock "left behind," guaranteed base salaries and minimum bonuses going forward, reporting and coverage issues, and clarification and modification of deferred and contingent compensation plans.

Preventing bonus-related disputes for financial traders and analysts is primarily a matter of what we refer to as "preemptive positioning." Each year during the months of July, August and September we counsel financial professionals in the best ways to help determine their bonus awards - even under those bonus plans that are entirely discretionary — during the following "bonus season," that is, November through February. To our knowledge, we are the only source of "preemptive positioning" counsel, or anything like it, currently available to financial professionals.

Negotiating severance arrangements for traders and analysts is primarily a matter of determining the compensation agreed, promised, assured, or suggested, and never delivered, or those other ways in which our client (or his or her reputation and career) may have been damaged by their employer, and then negotiating fair resolution. Difficult and delicate issues related to U-5 statements often arise in these negotiations, or at the least, serve as backdrop for our efforts.

Resolving disputes for traders and analysts most often involves our appearance in negotiations with the employer or employer's counsel, and, where necessary due to unsuccessful negotiations, in arbitration proceedings under the auspices of either the NASD or the NYSE. We have, as well, acted as counsel to traders and analysts in connection with licensure, disciplinary and law enforcement authorities, as well.