How are employment and executive-compensation disputes handled through mediation and arbitration?

Employment disputes — including those involving senior executives and their compensation — are frequently resolved through mediation and arbitration, often because the parties have agreed to ADR in an employment or separation agreement. These matters can involve claims about the terms of employment, the calculation of bonuses, equity, or deferred compensation, alleged breaches of contract, and the circumstances of a departure. They are typically sensitive and confidential, touching on reputations and internal company matters that neither side wishes to air publicly. Mediation and arbitration provide a private forum in which these disputes can be resolved with a neutral experienced in employment and executive-compensation issues, allowing a resolution that protects the interests and reputations of both the individual and the organization while avoiding the exposure of public litigation.