severance packages
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Happy New Year to all! I was recently made aware of someone (an executive vp) who left a company, not fired, not laid off, but left of his own free will. What surprised me, is that the person apparently recv'd some sort of largish compensation/severance package, large enough that the persons departure was delayed until this quarter so as not to affect the books for 2005. Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
Seems strange to me. I mean anyone is free to negotiate for whatever they want when they join a company, and if the company wants them badly enough they just might get it. Being "rewarded" for leaving a company however seems a little weird. In very senior positions it can take a substantial amount of time to find a new gig. A friend recently left a position as President of the Canadian division of an international firm, and his package was more than his annual salary including bonuses. David
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These are usually referred to as "golden parachutes."
"The words of God are not like the oak leaf which dies and falls to the earth, but like the pine tree which stays green forever." - Native American Proverb
DavidCrow wrote:
These are usually referred to as "golden parachutes."
That term is expanding a bit. It now includes pretty much any situation where the company gives an employee a significant amount of money to mitigate them leaving the company. Executives just get it guaranteed Jared Parsons jaredp@beanseed.org http://jaredparsons.blogspot.com/[^]
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Seems strange to me. I mean anyone is free to negotiate for whatever they want when they join a company, and if the company wants them badly enough they just might get it. Being "rewarded" for leaving a company however seems a little weird. In very senior positions it can take a substantial amount of time to find a new gig. A friend recently left a position as President of the Canadian division of an international firm, and his package was more than his annual salary including bonuses. David
David Cunningham wrote:
In very senior positions it can take a substantial amount of time to find a new gig
hence the reason for such "golden parachutes" and "severance packages"
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Happy New Year to all! I was recently made aware of someone (an executive vp) who left a company, not fired, not laid off, but left of his own free will. What surprised me, is that the person apparently recv'd some sort of largish compensation/severance package, large enough that the persons departure was delayed until this quarter so as not to affect the books for 2005. Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
There can be all sorts of factors involved. Given that it was an executive VP, he may have stock options that continued after employment that the company wanted to buy him out of. Maybe he had exercised options that he was cashing out on. Maybe it was part of a deferred salary arrangement when he was hired. Who knows. Marc Pensieve
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Happy New Year to all! I was recently made aware of someone (an executive vp) who left a company, not fired, not laid off, but left of his own free will. What surprised me, is that the person apparently recv'd some sort of largish compensation/severance package, large enough that the persons departure was delayed until this quarter so as not to affect the books for 2005. Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
Jim Crafton wrote:
Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me.
It depends on the company. When my brother left Intel he got a rather tidy sum. Generally such deals are meant to prevent layoffs. Layoffs mean the person could collect unemployment which half comes from the company who terminated the employee without reason and could last for a very long time. Voluntarily quitting or firing the person with reason illiminates the longer term unemployment overhead, so offering a reward for those employees who would like to leave is common in some of the larger companies. In my career path, termination is common and severance is rarely discussed. In fact rebid is coming up, so all the risks are back again. :) Luckily the contract is setup so that the company gets no benefit from firing or hiring, so unless it affects the contract score to do either then and only then will it happen. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)
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Happy New Year to all! I was recently made aware of someone (an executive vp) who left a company, not fired, not laid off, but left of his own free will. What surprised me, is that the person apparently recv'd some sort of largish compensation/severance package, large enough that the persons departure was delayed until this quarter so as not to affect the books for 2005. Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
I think if you dug deeper into "left of his own free will" you'd find less free and more will. The key was that he was an executive VP. Had he been the tea boy he would have been lucky to "leave of his own free will" with his shirt still on. regards, Paul Watson Ireland Colib and ilikecameras. K(arl) wrote: oh, and BTW, CHRISTIAN ISN'T A PARADOX, HE IS A TASMANIAN!
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Happy New Year to all! I was recently made aware of someone (an executive vp) who left a company, not fired, not laid off, but left of his own free will. What surprised me, is that the person apparently recv'd some sort of largish compensation/severance package, large enough that the persons departure was delayed until this quarter so as not to affect the books for 2005. Is this normal to recieve a severance package for leaving a job of your own free will? After googling a bit, most of what I found described severance packages as something you recieve after being laid off. It all seems rather strange to me. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
Only for the fat cats. The tigress is here :-D
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I think if you dug deeper into "left of his own free will" you'd find less free and more will. The key was that he was an executive VP. Had he been the tea boy he would have been lucky to "leave of his own free will" with his shirt still on. regards, Paul Watson Ireland Colib and ilikecameras. K(arl) wrote: oh, and BTW, CHRISTIAN ISN'T A PARADOX, HE IS A TASMANIAN!
Well, according to what I understand, this had been planned for almost 2 years, and it was his planning that set it up. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
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Well, according to what I understand, this had been planned for almost 2 years, and it was his planning that set it up. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
He planned to leave after two years? Probably a contractual payment then agreed upon when signed up. Like a signing bonus except at the end. regards, Paul Watson Ireland Colib and ilikecameras. K(arl) wrote: oh, and BTW, CHRISTIAN ISN'T A PARADOX, HE IS A TASMANIAN!
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He planned to leave after two years? Probably a contractual payment then agreed upon when signed up. Like a signing bonus except at the end. regards, Paul Watson Ireland Colib and ilikecameras. K(arl) wrote: oh, and BTW, CHRISTIAN ISN'T A PARADOX, HE IS A TASMANIAN!
No, sorry, my bad. He'd been with the company for ~15 years, but had planned his leaving and that planning had supposedly started 2 years ago. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
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That's what I thought too. Then I looked up "golden parachutes" (somewhat nervously, as you can imagine...). According to most of the links I found the "golden parachute" is specifically targetted at executives who would be let go in the case of a merger or hostile takeover. From what I understood, they are used in some cases to prevent (or reduce the chances of) the hostile takeover by being prohibitively expensive. ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned Save an Orange - Use the VCF!
My bad. I've seen two executives leave with a large sum of money 'in their pocket' as a result of said parachute. It was, however, related to an imminent acquisition.
"The words of God are not like the oak leaf which dies and falls to the earth, but like the pine tree which stays green forever." - Native American Proverb