How Companies Address #MeToo Claims in Executive Employment Agreements Matter

In a recent working paper, researchers at UCLA and the University of Amsterdam determined that a single sexual harassment claim can cause more damage to a company’s reputation than financial misconduct or fraud. In this #MeToo era, it’s no surprise that companies are nervous about sexual harassment. On the more positive side, the academic paper also found that how a company responds to a claim can go a long way to combating the reputational damage. So what can your company do to help itself?

We’ve blogged before about the incorporation of #MeToo representations and the Weinstein clause into merger and acquisition agreements, and how to strengthen your company’s employment policies to curb sexual harassment. What are other ways to prevent sexual harassment allegations from damaging your company? Address it directly in your executives’ employment agreements.

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