United States: The Door Continues To Close On "Light": Texas Supreme Court Holds Stock Options Award To Valuable Employee Provides Necessary "Nexus" To Protection Of Company's Goodwill

On June 24, 2011, the Texas Supreme Court further departed from the standard set in its 1994 decision in Light v. Centel Cellular Co. by ruling in a 6-3 majority that stock options granted to a valuable employee are sufficient consideration to support a post-employment restrictive covenant because they are "reasonably related" to the company's interest in protecting its goodwill.

Read the full analysis here.