Typically, the bigger a company is, the less chance there is that its leadership will think twice about letting you go from your job. If they don’t feel that you’re the right person to carry their operation into the future, then a big corporation will likely cancel your contract.
They generally won’t do so without first negotiating a severance agreement with you, though. You’ll want to make sure that your severance agreement includes a few important details when negotiating it with your employer.
Negotiating your severance pay
One key component in a severance agreement is pay. Many employers will offer as much as 12 months of severance pay. They may lowball you initially, hoping that you’ll take the bait. You should continue to negotiate your severance pay until you reach a number that will provide you with a financial cushion until you land your next job.
Negotiating a lump sum settlement may also be a favorable option if you have concerns that there may be an offset or clawback scenario that could keep you from getting the money you expected. You’ll want to familiarize yourself with the tax implications of selecting one payment option versus another. You may also demand that your employer include a clause in your agreement allowing the pay to continue if you unexpectedly suffer a disabling accident or prematurely die.
You may also want to bring your receipt of vacation leave, stock options and health insurance into negotiations. You may be able to keep them for the duration of your severance pay period.
Where to turn for help with severance payments
You’ve likely worked hard to get to where you are. You probably realize that coming across an executive role will take some time. You owe it to yourself to negotiate a severance package that will allow you to identify and ease into your next role. An attorney can provide guidance in the negotiation process to ensure that you strike a deal that protects your best interests.