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EXECUTIVE WATCH GlobeSt.com:
BY ANTHONY J. LOPINTO
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| EXECUTIVE WATCH
is a weekly column featured on GlobeSt.com, the leading online real estate
news site. Tony LoPinto, the CEO of Equinox Partners has been the
author of this widely read column.
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EXECUTIVE WATCH PERSPECTIVE
By Anthony J. LoPinto
January 02, 2007
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We have recently dealt with clients who included a requirement that a new recruit sign a broad-gauged "non-compete" agreement as a part of the hiring process, which essentially precluded the individual from working in their area of expertise for one year. In two of these assignments, which involved mid-level professionals in public and private companies, this stipulation turned the recruiting process upside-down, and the candidates ultimately did not take the job (even when the requirement was taken off the table, in one case). Typically, non-compete agreements are more often utilized by service companies and brokerage firms, as well as for C-Suite executives who have significant equity packages. I am not here to question the enforceability of non-competes (many contend that they are actually unenforceable, especially in certain jurisdictions), but I can confirm that it may seriously compromise your ability to hire the candidate of your choice. Candidates asked to sign the clause may instead choose to remain in the market, competing head-to-head with you.
© 2007 - GlobeSt.com, all rights reserved.
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