Most states follow the employment-at-will doctrine, and employment for an indefinite term may be terminated at will and without cause. Absent a specific contract term to the contrary, this doctrine allows an employee to quit or be terminated without liability on the part of the employer or the employee, with or without cause.

But executive employees often have a written employment contract that provides for a more complex compensation structure—including incentives, bonuses, and severance pay—and limits the circumstances under which the executive may be fired or terminated to those situations in which the employer has cause for termination, as defined in the written employment agreement.

In New York, as in most states, the employment-at-will doctrine is the default rule, meaning that either the employer or the employee can terminate the employment relationship at any time, for any reason, or for no reason at all, without incurring legal liability, provided that the termination does not violate specific employment laws or contractual agreements. However, for executive employees, it is common to have written employment contracts that detail a more complex compensation package, which may include various forms of incentives, bonuses, and severance packages. These contracts often stipulate the conditions under which an executive can be terminated, typically requiring 'cause' for termination. 'Cause' is defined by the terms of the employment contract, and the contract will usually outline the process for termination and any potential remedies or severance entitlements. It is important for both employers and executives to carefully negotiate and understand the terms of such contracts to ensure clarity on the rights and obligations of each party in the event of termination.