I wrote about the case of Drennen v. Exxon Mobile over a year ago. Drennen was the case of the Exxon executive who forfeited millions of dollars in incentive compensation when he left Exxon to work for a competitor. You can read the background of the case here. Today, the Texas Supreme Court held that a forfeiture clause contained in Exxon's non-contributory profit sharing plan (i.e., a plan to which the employee contributes nothing) did not constitute covenant not to compete under Texas law.
Because the forfeiture provision was not a noncompete, the public policy of the state of Texas was not implicated and the court held that the parties' choice of . . .