Concerns on Exec Noncompetes Persist, Despite Court Injunction—Agenda

Though a federal judge has upheld a challenge to the U.S. Federal Trade Commission’s ban on noncompete agreements, it doesn’t mean we have seen the last of the FTC’s quest to strike them down. Boards should be prepared for a scenario where more employees pursue litigation over noncompete clauses, and this includes the executive talent pipeline, according to this article in Agenda. Though the FTC ban did not apply to senior executives, there are implications for building out the bench of future executive talent, Farient’s RJ Bannister is quoted as saying within. As the article says:

“Comp committees should ask themselves how interchangeable their current employees are and whether less experienced mid-level personnel can step into more senior roles if an executive is poached, said Bannister. Companies are becoming more proactive in succession planning by way of talent development. Still, boards should make sure they have “ready for the moment” plans in place roughly five to seven years before anticipated high-level departures, said Bannister. That’s better than being caught off-guard and potentially ending up in defensive mode, he added.”

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About R.J. Bannister

Partner, COO, Farient Advisors/GECN Group, New York

New York: (646) 626-6929
Mobile: (917) 747-3985
rj.bannister@farient.com

R.J. has 30-plus years of experience consulting to the S&P 1500 and large private companies representing the board’s compensation committee or management, and sometimes both parties. R.J. has worked with hundreds of companies on their total rewards strategy and executive compensation philosophy to align pay programs with business strategy. His ability to create alignment results from deep insights on industry and compensation trends; sophisticated financial, market, and compensation analytics; and impactful, easy-to-implement solutions. He has worked in nearly every industry sector and extensively with private equity companies. Before joining Farient, R.J. was the founder and CEO of Bannister Group LLC, an executive compensation and total rewards consultancy he founded in 2019 after retiring as a managing director from Willis Towers Watson. R.J. holds an MSc in economics from the London School of Economics and a BS in economics from the University of Pennsylvania’s Wharton School with a triple concentration in corporate finance, strategic management, and international political science.

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