When you’re earning at a high level, your severance package should reflect not only your compensation but also your contributions and risks. Too often, executives sign standard severance agreements without fully understanding what they’re relinquishing. Severance packages are contracts drafted to benefit the employer. The attorney writing the severance agreement is working to protect the company’s rights – meaning it’s up to you to protect your rights.
Key components to examine include the amount and structure of severance pay, continued health benefits, treatment of equity or stock options, and non-disparagement or non-compete clauses. It’s not just about the number at the bottom—it’s about the strings attached. For instance, a seemingly generous severance amount may be contingent on waiving significant legal claims.
Negotiating a better deal requires leverage and a clear understanding of your position. Sometimes, simply involving an attorney signals that you take your rights seriously. We help clients assess their risks, identify opportunities, and navigate these high-stakes conversations with tact and strategy.
If you’re considering a severance agreement, get a second opinion—ideally from someone who has seen hundreds of them and knows the terrain.