Exxon Mobil Corporation v. William T. Drennen, Iii

In this declaratory judgment action, we consider whether New York choice-of-law provisions in a Texas-based corporation’s executive bonus-compensation incentive programs are enforceable and, if not, whether the programs’ provisions allowing forfeiture of an executive’s bonus awards for engaging in “detrimental activity” are enforceable under Texas law. We hold that the New York choice-of-law provisions in the executive compensation plan are enforceable and that the detrimental-activity provisions are enforceable under New York law. Accordingly, without reaching the second question, we reverse…