Severance

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Related to Severance Payments: Severance package

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 ?
The accounts also confirm what the council told the Observer in May, following a lengthy Freedom of Information wrangle, that Mr Carruth's remuneration in 2018-19 was made up of salary of PS83,652, expenses of PS353 and a severance payment of PS10,000.
In their letter, Senator Warren and Representative Ocasio-Cortez outlined how Sun Capital's financial engineering drove Shopko to bankruptcy, and criticized the firm for reneging on its promise of severance payments to thousands of Shopko employees after years of looting the company's assets.
The shares payable as severance payments or as rewards for each performance period under share-based incentive plans will be repurchased during certain defined periods after board approval of the financial statements of the company for the years 2018, 2019 and 2020 respectively, and commencing on 18 April 2019 at the earliest, and conveyed to the participants in the plan after the end of each such repurchase period.
Although Mr Rogers received a smaller severance payment of PS118,231 his pension contributions for the year totalled PS369,826.
The company made severance payments to the employees whose employment was involuntarily terminated.
Two recent appellate court decisions came to opposite conclusions on the question of whether severance payments are subject to FICA.
Quality Stores, Inc., deciding that severance payments employers made to laid-off employees are "wages" and are taxable under FICA.
The Treasury approved 1,053 special severance payments totalling PS28.4m in the three years to March 2013 but this does not include pay-outs by "local government, the police, the BBC, and private sector providers of public services".
Following the closure of certain prep schools due to an education reform in 1997, the employees were awarded severance payments by the Supreme Court of Appeals.
The paper disclosed that Philip Lee, who was in charge of the unsuccessful merger with the Britannia Building Society, and Michael Fairbairn, the banks former chief risk officer, were paid GBP1.1m in severance payments.
Therefore, the speculation about severance payments was just that - and certainly not factual either.
In a statement, London's Metro police said they are gathering information following allegations of misconduct in public office and fraud related to severance payments at the BBC.