CFO Europe -
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Published on: 11/9/2005
Last Visited: 11/9/2005
Linda Doyle, a partner with law firm McDermott, Will & Emery in Chicago, says executives frequently spend more time thinking about other parts of their employment contracts (such as compensation) than about the noncompete clauses."All too often, they don't appreciate the [noncompete] in terms of its enforceability," she says.
CFOs who oversee the HR function have to consider noncompete agreements from the employer perspective as well, since they are involved in applying them and deciding whether to take legal action against employees who violate them."Companies cannot simply restrict competition, they can only protect legitimate business interests, such as trade secrets or other confidential information," says Doyle."Don't ask for the moon."She urges companies to identify their most important competitors and consider naming them in the noncompete.