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Exec stock grants prohibit hiring of employees from the company they left.

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  • Exec stock grants prohibit hiring of employees from the company they left.

    Kentucky.

    A senior VP leaves company A for a job at company B. For the VP to maintain stock grants that have not yet matured at company A, company A requires the VP not to hire employees from company A without company A's permission. Presumably this is in place to prevent the VP from 'cherry picking' his old staff at company A.

    Company B posts a new job. Luke, an employee for company A, applies for the job and is told to seek permission from company A to interview for subsequent hire.

    Company A tells Luke he can interview and even get hired (thanks) but implies they will penalize the VP for hiring from company A. So, company A has essentially devised a 'poison pill' for the hiring VP ensuring Luke will not get offered the job.

    Luke has never met the VP, was never in the same division as the VP, has never corresponded with the VP, and never spoke with the VP. Clearly not a 'cherry picking' situation.

    Can company A get away with this?

    Do I have any recourse/leverage with company A to get them to reconsider?

    Do I have a chance to sue for damages since by following the process I have exposed to company A that I am planning on leaving?

    Thanks!

  • #2
    Yes, no and no.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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