Fortune 100 manufacturer requesting
top executives to sign non-competes
Worried that rivals may woo its managers, Ford Motor Co. is
asking 52 top executives to sign agreements to deter them
from leaving their jobs.
CNNFN interviewed a Ford spokeswoman:
"We are in a competitive environment for talented automotive executive talent," Gattari said. "We value our talent a great deal and need to protect our human resources just as we protect our trade secrets and proprietary information."
The agreements generally prohibit employees from going to work for rivals and aim to protect company secrets from the competition.
While the No. 2 automaker is making "some considerations" for additional compensation for signing the new loyalty agreements, Ford declined to disclose the financial terms, Dow Jones reported.
Ford shares slipped 16 cents to $12.64 Tuesday afternoon.
Non-compete agreements were common in the late 1990s, when the unemployment rate tumbled to 30-year lows and employees could change jobs easily.
It's
not clear how legally binding they are. One Web site, breakyournoncompete.com,
is devoted to representing clients trying to get out of the
agreements.
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