Severance

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Severance

A settlement received after being released from a corporation. In the context of corporate governance, an agreement that assures high-level executives of their postions or some compensation and are not contingent upon a change in control.

Severance

A payment often (but not always) made in a lump sum that occurs when an employee is laid off or fired. Severance is sometime voluntary; that is, an employee may choose to quit and take a severance that is offered instead of staying and risking a layoff with no severance. The amount of severance is determined by the employee's length of time at the company, previous pay rate, and other factors. Accepting a severance makes one ineligible to collect unemployment insurance or to initiate a wrongful termination lawsuit. A severance exists in order to reduce the risk of the company when layoffs become necessary and to improve employee morale.
References in periodicals archive ?
Illinois legislators have attempted to regulate community college president severance packages in the recent past.
A major part of the cost of the severance packages was the sums paid by the councils to the Teesside Pension Fund to cover the pension costs of employees leaving the authorities early.
An NAO spokesman said the decision to look at BBC severance packages was taken in the light of Mr Entwistle's departure.
News reports have put Kelly s severance package at between $2.
Malaysian transport minister Chan Kong Choy said that as part of its plan to get profitable again the airline has made an offer of severance packages to more than 18,000 employees.
When asked whether their current position included a severance package, a very high percentage (67 percent) of respondents reported that it did not.
This was my reality as a civil servant--no severance package and no pension.
A Severance packages have come under heavy scrutiny lately, particularly since many company policies on this matter are out-of-date.
But the vast majority of the workers will be given severance packages.
No law requires employers to give severance packages to laid-off workers, said Margo Norton, deputy commissioner of the Oregon Bureau of Labor and Industries.
While many factors are behind the escalating severance packages, both CEOs and boards should be concerned about public perception on the issue.
The DVD is viewable on any computer or mobile media player (such as an iPod) and features 60 minutes of live video with attorney David Hoffman sharing his knowledge and experience negotiating severance packages for his clients.