Monday, June 11, 2007

Cash Severance vs. Service Severance vs. Both

Let's assume that the New Severance should include cash and include services designed to help you find a new job. How should the cash benefit be structured? Lump sum? Paid out over time? Should that time be based on some specific formula, or should you be able to determine it? Should it be directed towards paying for new training? Should you have the ability to pre-fund your severance account? Are there any "tax smart" approached to paying out/receiving severance?

And then what about the services provided by the New Severance? What could a company possibly do or pay to have done that would provide the greatest benefit to those people it just fired.

Think about it. We'll talk tomorrow.


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