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Some common non-compete obligations
While it differs greatly from competitors, it usually prevents advertising agencies and marketers from leaving their employers and immediately going to direct competitors. For example, think of a Coca-Cola marketer going to PepsiCo, or going from McDonald’s to Burger King. It can also include confidentiality and non-solicitation clauses that prohibit senior management from taking intellectual property to competitors, poaching talent or, in the case of advertising agencies, poaching clients for a period of time. increase.
Simone Oppenheimer Mandel, co-founder of agency NBZ Partners, said, “The anti-competitiveness coming out of agencies is mainly C-level staff and people leaving their current agencies to move to competitive agencies. It has to do with the grace period until.”
The management team in charge of the story said this grace period for non-compete obligations typically ranges from six months to two years. They said it can sometimes last as long as five years, but it’s considered rare and terrible.
The non-compete obligation also extends to agency executives setting up their own shops. Entrepreneurs that the FTC seeks to protect are typically prohibited from poaching customers or staff from their former employers for a period of time.
More and more advertising agency executives are leaving Topshop and holding companies to start their own businesses. and WPP-backed Cartwright, founded in 2020 by agency veteran ex-Stagwell. – Owned by Keith Cartwright, Executive Creative Director of 72andSunny.
Two advertising agency chief executives, who spoke on condition of anonymity, said they don’t typically impose strict non-compete obligations on employees and doubt many agencies do. rice field.
One agency executive said they sometimes offer signing bonuses on top of annual salaries. Firing a specific direct competitor or recruiting for six months after a key person leaves. “They can say ‘no’ and get no signing bonuses,” said an agency executive.
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