Director’s employment contracts for media companies
Best Practices for Media Executive Director Agreements
Enhancing Media Company Governance Through Effective Contracts
Introduction
This article discusses how to create effective employment contracts for a senior executive in a media company.
What does an executive director in a media company do?
An executive director at a media company oversees operations and strategic direction, including business planning, content management, team leadership, ensuring financial stability, and acting as the spokesperson.
Key Responsibilities of an Executive Director in a Media Organisation
Case Study - A Production Director for a Multi-Media Streaming Company Like Netflix
- Strategic Planning: Develops media strategies and content across TV, film, and digital platforms, targeting specific audiences.
- Team Leadership: Motivates diverse teams, ranging from small groups to large departments, with direct reports.
- Financial Management: Managing budgets and revenue streams.
- Industry Relations: A production director builds stakeholder relationships, collaborates with broadcasters and filmmakers, and enhances networks for original content production. It involves growing the network of producers for representation across the original TV and film slate and identifying synergies between content types.
- Brand Management: Ensures all productions align with brand guidelines and marketing strategy across all media - TV, Print , video and social media.
- Innovation and Adaptation: Exploring new technologies and media formats to remain competitive and overseeing original projects with financial and operational guidance.
Case Study - Artist & Repertoire (A&R) Director for a Record Label
- Strategic Planning: An A&R Director finds and signs new music talent.
- Team Leadership: Responsible for managing A&R coordinators and other A&R staff.
- Financial Management: In charge of the department’s budget, managing staff, hiring new talent, and sometimes acting as A&R manager for larger acts.
- Innovation and Adaptation: An A&R director requires in-depth knowledge of the music scene and production processes to make informed decisions and negotiate deals that benefit the label and artists.
Executive Appointment and Benefits Overview
The executive is expected to join the company's board. As specified in the agreement, various annexes will need to be attached. In addition to a basic salary, the company typically provides private healthcare, a car, pension contributions, and participation in its bonus and share option scheme. The company will agree to obtain the executive's express consent before disclosing any private and personal information to third parties, regardless of whether such information is deemed sensitive by law or otherwise.
Best Practices for Job Offer Documentation
The job description should be detailed, as should the reporting structure within the organisation. All benefits under the contract should be examined in depth, and documentation must be reviewed before signature. Although it is not strictly necessary to attach annexes, it is good practice to do so to clarify the range of policies and procedures that most people only read after they have joined a company.
Examples of annexes could include:
- Executive Job Description
- Health & Safety Policy
- Disciplinary Policy
- Maternity Rights Policy
- Paternity Rights Policy
- Executive Pension Scheme
- Grievance Procedure
- Data Protection Policy
- Executive Bonus Scheme
- Executive Share Option Scheme
Importance of a Staff Handbook and Compliance with Statutory Requirements
A staff handbook containing the company's policies and procedures is also recommended. It is a statutory requirement that health and safety and disciplinary and grievance procedures must meet the minimum statutory requirements as prescribed by the ACAS Code of Practice.
Does the law require a staff handbook?
All UK employers must ensure that workplace policies and procedures are easily accessible. Although not legally required, reputable employers typically have a staff handbook that provides essential information throughout the employment lifecycle. Medium—to large organisations usually provide a digital staff handbook on the intranet that covers various workplace topics. In contrast, smaller employers might produce a few hard-copy manuals stored in a specific location for easy access by employees.
Optional Issues for an Executive Employment Contract
1. An indemnity provision may be included for either party.
2. Public liability insurance may not be explicitly mentioned in the contract; however, it may be relevant to include this for background purposes.
3. A "golden hello" payment could be included as a lump sum at signing or spread over the first few years. This is quite common in media companies.
4. An arbitration clause may be included, but a corporate grievance clause is mandatory.
5. Optional benefits might include a clothing allowance, equipment allowance, travel standards, entertainment expenses, and research material allowances.
6. Restrictive covenants may limit the type of employment the executive can pursue once the contract concludes. A non-solicitation clause may prevent the executive from soliciting the company’s employees, customers, or suppliers. Note: Legal professionals must meticulously draft these types of clauses; if they are too broad, they will likely be deemed an unreasonable restraint on trade and, therefore, ruled unenforceable.
Conclusion
In conclusion, crafting a comprehensive and effective employment contract for an executive director within a media company requires a detailed understanding of the industry and an awareness of these leaders’ unique responsibilities and challenges. Our expertise lies in developing tailored employment contracts, including full-time, part-time and short-term consultancy agreements, that protect the company’s interests and provide clarity and security to the executive. From strategic planning to financial management and compliance with statutory requirements, our services ensure that your organisation is set up for success.
Don't hesitate to reach out if you need expert assistance in drafting clear, effective media contracts. Call us at +44(0)207-305-7491 or email us at peter@pailsolicitors.co.uk to start creating a solid foundation for your executive leadership today. Let us help you navigate the complexities of employment agreements with ease!
The writer is a digital media and IP lawyer, owner and principal solicitor at PAIL® Solicitors. Peter Adediran’s specialist niche area of practice is IP and website/mobile app compliance and contract law for SMEs, artists and management.
