The Texas Supreme Court has granted ExxonMobil’s petition for review in an important case involving a forfeiture provision in agreement between ExxonMobil and a senior management employee incentive compensation agreement. As an amicus in this case, TCJL asked the Court to grant review on the basis that the Fourteenth Court of Appeals wrongly set aside a forfeiture provision that gave the employer the right to cancel restricted stock if the employee accepted subsequent employment with a direct competitor. TCJL argued that Texas courts should enforce contracts that condition post-employment benefits on the employee’s free choice to engage in future employment that adversely affects the employer funding those benefits. If an employee opts to accept employment with the former employer’s direct competitor, TCJL contends, the former employer should not be required to pay out an incentive compensation agreement for post-employment benefits.
Oral argument has been scheduled for November 2, 2013.