28 Feb 2023
Time to Say Goodbye: Handling an Executive’s Severance
Executives will terminate employment, like any other employee, but compensation and benefits issues to consider in connection with the termination of executive-level employees often require more work from Human Resources in managing the terms of the termination and subsequent payouts. This practice note discusses considerations for a smooth good-bye.
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Hear advice on how you can help an employer protect its interests when negotiating separation agreements with executive employees. Often employers believe they owe executives few additional benefits after employment ends. If they choose to offer any severance, employers may offer just enough to make it difficult for the executive to turn down the offer. Prepare for a broader demand.
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Learn more about drafting a separation agreement and the common terms that you should consider including in them.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- Retirement Plans. IRS announces that on or after February 28, 2023, it intends to issue opinion letters for pre-approved defined benefit plans that were (1) restated for changes in plan qualification requirements listed in the 2020 Cumulative List (see Notice 2020-14), and (2) filed with the IRS for the third six-year remedial amendment cycle under Rev. Proc. 2016-37 (which opened on August 1, 2020 and ended July 31, 2021). Announcement 2023-6.
- Health and Welfare Plans. HHS releases initial guidance for the Medicare Prescription Drug Inflation Rebate Program under the Inflation Reduction Act providing that drug companies will rebate Medicare when their prescription drug prices increase faster than the rate of inflation for certain drugs dispensed to Medicare enrollees. HHS Press Release (Feb. 9, 2023).
- Health and Welfare Plans. FTC imposes a fine of $1.5 million against GoodRx for the unauthorized disclosure of consumer health data. FTC Press Release (Feb. 1, 2023).
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- The Practical Guidance Journal Climate Change Special Edition features guidance on insuring for climate change, renewable energy initiatives, and a guide for public and private projects related to sea level rise.
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- Check out the new Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 22 practice areas and find out how you can Become a Practical Guidance Author.
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