Keeping and Using Your Ace in the Hole in Negotiating Your C-level Executive Contract

When negotiating your next C-level executive contract, your instinct might be to lay all your cards on the table, impressing your potential employer with everything you can bring to the organization. However, I would advise, based on my experience representing C-suite executives, that by holding back a little – keeping an ace in the hole, as they say – you will create a sense of anticipation, increase your value in the eyes of the company, and ultimately enhance chances of achieving your desired executive contract terms.

The Power of Credibility Without Full Disclosure

The first area this arises is in the job offer and employment contract negotiations. As an executive, you’re not just being hired to fill a position—you’re being brought on board to deliver results and drive the company forward. Establishing credibility from the start is crucial, but this doesn’t mean you need to reveal your entire playbook during negotiations. Instead, focus on setting out a series of key deliverables that showcase your ability to add value. These should be significant enough to demonstrate your potential impact but leave room for the possibility of additional contributions down the line.

By presenting a strong but incomplete picture of what you can achieve, you create a powerful negotiating tool. You’re effectively saying, “Here’s what I can do for you—but if you want more, you need to meet me halfway.” This approach not only positions you as a critical asset to the company but also gives you leverage to negotiate more favorable terms, whether in your employment contract, separation agreement, or potential consulting arrangements.

Leveraging the Unknown in Job Offer Negotiations

During initial executive job offer negotiations, it is tempting to share all your ideas and plans to impress the hiring committee. But holding back some of your insights can work to your advantage. By sharing a few key strategies or innovations you plan to implement, you demonstrate your value without giving away everything you bring to the table.

For example, you might outline a new approach to optimizing operational efficiency or a plan to expand into new markets. However, make it clear that these are just the beginning. Let the company know that you have other ideas in your pocket – initiatives that could be of equal value and possibly even more transformative, but which you’re willing to discuss only once the terms of your engagement are more clearly defined.

This strategy can lead to a stronger negotiating position. The company will want to unlock the full range of your capabilities, making them more likely to agree to better compensation, bonuses, equity stakes, severance protections or other terms you seek that are in play. They are not just hiring you for what you have already revealed – they are investing in the potential you have hinted at but haven’t fully disclosed.

Terms of Separation: Keeping the Ace for Later

Your negotiation strategy doesn’t end when you sign the contract. A second major area where these negotiations arise involved separation when your employment is terminating. When it comes time to discuss terms of separation—the same principles apply. As you negotiate for your exit package, if the termination is without cause, part of your leverage would come from release potential claims, including claims mentioned in my prior articles about wrongful termination, Promissory Estoppel and Good Faith and Fair Dealing.

However, other times your leverage may come from your knowledge, experience and contacts, and your potential use to the company in post-termination paid transition services and consulting. Here you might suggest three particular assignments for yourself that address particular gaps created by your separation. But it can also be useful to advise that there are three or more other assignments of equal or greater performance that we can discuss once the exit terms have been agreed upon.

Don’t feel compelled to outline every way you could continue to add value to the company after your departure. The uncertainty and curiosity over what else you might offer can provide added stimulus for the company to reach terms with you.

Typically, in these negotiations, the executive would want to include a list of key past achievements and accomplishments including those in the recent past – a reminder of what you have done and are capable of doing, and then to the proposed assignments and attempted valuation of the benefits these may bring to the company. Instead, it is hoped that this approach would demonstrate value and thus encourage the company to offer better separation terms, such as extended severance, stock options, or lucrative consulting opportunities. They’ll be motivated by the prospect of accessing the additional value you could bring, even after you’ve officially moved on from your role.

Your Consulting Practice

A third area of these discussions as alluded to above is in consulting agreement whether those arise in connection with separation or as part of your first services for the company. Those first services are discussed in my previous article “Consulting Between CEO Positions,” maintaining a consulting practice while taking on a full-time executive role can be strategically advantageous. During executive contract negotiations, aim to ensure your agreement allows for this dual focus.

Propose a commitment to devote “substantially all your time” to the new position, leaving room for your consulting work.

You might agree not to seek new clients during your tenure or limit consulting to existing clients. Emphasize that your consulting will neither interfere with your full-time role nor conflict with the company’s interests. You may even bring valuable information from outside contacts through your consulting practice. Apply the “Ace in the Hole” strategy by holding back this request until after you’ve established your value, and your future employer is eager to bring you on board. That way, they will likely accept that concession.

Have an Ace in the Hole

In negotiating your C-level executive contracts, the key to maximizing your value is not just about what you bring to the table, but how and when you reveal it. By holding back some of your value propositions—whether during initial job offer negotiations, in discussions about separation terms, or in consulting arrangements—you create a sense of anticipation and establish yourself as an indispensable asset. This strategic reserve not only enhances your negotiating power but also ensures that the company remains invested in your ongoing contribution, both during and after your tenure.

The Country artist George Strait well set out this strategy in his signature song “Ace in the Hole”. The lyrics –

You’ve got to have an ace in the hole A little secret that nobody knows Life is a gamble, a game we all play But you need to save something for a rainy day

You’ve got to learn to play your cards right If you expect to win in life Don’t put it all on the line for just one roll You’ve got to have an ace in the hole

If you’re headed down a one way street And you’re not sure it’s the way you wanna go In money or love or all the above Have a little more than what you show

When life deals out a surprise Have a few surprises of your own No matter what you do, no matter where you go You’ve got to have an ace in the hole Source for lyrics: https://genius.com/George-strait-ace-in-the-hole-lyrics

In the world of executive leadership, the value you don’t reveal can rival and sometimes be just as important as the value you do reveal. As the song suggests, retaining some of your important strategies and connections for future use might provide benefits when needed.

Written by Robert A. Adelson.

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