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 ?
38 crore as severance payment to the then CFO Bansal in 2015.
Special severance payments when staff leave public service employment should be exceptional.
Severance payments made pursuant to a written plan or agreement, which is entered into while the employee is still actively at work, should be considered compensation for services in most cases.
This treatment was problematic for executives, because it meant that the employment contract granting such severance payments constituted a non-qualified deferred compensation plan subject to Section 409A.
4 million related to severance payments, reduced 38% from $26.
Pay critics stand ready to pounce under almost any circumstance, from a top-performing CEO who makes hundreds of millions of dollars to a failing CEO who receives contractual severance payments.
Hampton some severance payment, but with no information about the amount, CREW asked the Federal Election Commission to investigate the committees' failure to report the contribution in violation of the Federal Election Campaign Act (FECA) and to determine whether Sen.
A report to a meeting of Unite's executive revealed Derek Simpson was paid more than pounds 500,000 when he left his post last year, including a pounds 361,000 severance payment.
Last night, he added: "I have instructed the trust to withhold any severance payment to the former chief executive of Maidstone and Tunbridge Wells NHS Trust, pending legal advice.
The company anticipates net earnings of $119 million, or $141 million excluding a one-time severance payment in the June quarter, reversing a $1.
US Airways Group Inc is being sued by a shareholder, Steven Rosenberg, over a severance payment deal for the company's top three executives.
I have foregone my severance payment, Enda took his severance payment, Enda took his severance payment.