For executives and senior professionals, base salary may represent only one part of annual compensation. A significant share of earnings can come through performance bonuses, commissions, equity, profit sharing, deferred compensation, and other incentive arrangements. When an employment relationship ends or a company refuses to pay, the amount in dispute can be substantial.
Wall, McLean & Gallagher represents executives and senior-level employees, not employers, in employment matters throughout Montana. We handle compensation disputes involving executives, physicians, senior sales professionals, managers, business leaders, and other highly compensated employees.
Bonus disputes often arise after an executive has completed the work or performance period tied to an incentive but leaves the company before payment is made. The employer may claim the bonus was discretionary, that continued employment was required on the payment date, or that performance conditions were not satisfied.
The word “discretionary” does not always answer the dispute. We look at the documents and conduct surrounding the compensation arrangement, which may include:
The timing of a termination can be particularly important when an executive is let go shortly before a substantial annual or performance bonus would otherwise be paid.
Commission disputes can involve far more than determining whether a sale occurred. Senior sales executives and other professionals may have compensation tied to revenue, transactions, accounts, team performance, renewals, milestones, or deals that take months to complete.
A common dispute is whether an executive is entitled to commissions on business generated before termination when the transaction closes or the customer pays afterward. Other disagreements concern how commissions were calculated, whether the company changed the compensation plan, or whether a particular transaction qualifies for payment.
Wall, McLean & Gallagher examines the compensation plan, employment agreement, communications between the parties, payment history, and the work performed before departure to determine what compensation may remain due.
Equity can represent a substantial part of an executive’s overall compensation and may create difficult questions when employment ends.
Stock options, restricted stock, ownership interests, equity awards, and similar arrangements often contain detailed rules governing vesting and what happens after resignation or termination. A dispute may arise over whether an award vested, whether termination caused forfeiture, how an ownership interest should be valued, or whether the employer properly applied the governing agreement.
When equity is involved, we review the employment relationship together with the documents governing the award rather than treating the final paycheck as the complete measure of what is at stake.
Some compensation is deliberately earned now and paid later. Executive deferred compensation and profit-sharing arrangements can create disputes when an employee departs before a scheduled payment or when the company takes a different position on eligibility after termination.
Questions may include whether compensation was already earned, what conditions remained before payment, whether termination changed the employee’s rights, and which documents control.
These disputes can involve employment agreements, compensation plans, company policies, amendments, separation documents, and years of prior payment practices.
Termination frequently becomes the point when disagreements over compensation surface. An executive may be told that a pending bonus will not be paid, unvested equity has been forfeited, future commissions are canceled, or deferred compensation is no longer available.
The sequence of events deserves close attention when termination occurs shortly before a major compensation event. Relevant questions can include when the compensation was earned, whether payment depended on continued employment, what the governing documents actually require, and whether the employer followed those terms.
The circumstances surrounding the termination may matter for other reasons as well. Compensation disputes sometimes overlap with breach of contract, retaliation, discrimination, or disagreements about whether an executive was properly terminated for cause.
A severance agreement can affect compensation that extends beyond the severance payment itself. Before releasing claims against an employer, an executive should know how the proposed agreement treats outstanding bonuses, commissions, equity, deferred compensation, benefits, and other amounts that may be due.
Wall, McLean & Gallagher reviews these issues as part of executive separation and severance matters. Where compensation remains disputed, it may become a significant part of severance negotiations.
Complex compensation structures are not limited to corporate executives. Physicians and other healthcare professionals may have productivity bonuses, collections-based compensation, ownership interests, partnership distributions, or other incentives. Senior sales professionals may have substantial commissions tied to transactions completed over long sales cycles.
In each setting, the dispute often comes down to what the compensation documents required, what the employee accomplished before departure, and what the employer did afterward.
Wall, McLean & Gallagher is based in Helena and represents executives and senior-level employees throughout Montana in significant compensation disputes. Our employment practice is employee-side. We do not represent employers in employment matters.
If your employer has refused to pay an executive bonus, commission, equity award, profit-sharing amount, deferred compensation, or other significant incentive compensation, we can review the agreements, compensation plans, and circumstances surrounding the dispute.
Contact Wall, McLean & Gallagher to discuss an executive compensation or bonus dispute with a Helena employment attorney.
