Non-Compete Period

A non-compete period is the length of time, following an executive’s departure, during which the employment agreement restricts them from working for a competing business, typically in exchange for severance or other consideration. Twelve to twenty-four months is a common range for senior executives, though it varies by company and by state law — several states, including California, restrict or void non-compete provisions for employees generally.

A non-compete is usually paired with a non-solicit provision covering employees and customers, and often with a confidentiality covenant, but the three are legally distinct: a court or regulator can find one enforceable and another not, even within the same agreement.

Enforceability aside, the disclosed length itself is informative in relative terms — a company that binds a departing chief executive to a longer restriction than a typical peer is signaling how much competitive risk it assigns to that executive’s knowledge and relationships.

A Wintrust employment agreement discloses a non-compete period of 36 months following departure.