Recent Examples of severance pay from the Web
Still, will private equity firms be on the hook in the future for severance pay in other bankruptcies and liquidations?
The department’s highest expense was coaching salaries at just more than $17 million, not including more than $5 million in severance pay for former football coach Bob Diaco.
The $14 million figure was paid out over a seven-month period and appears to include about $13 million in bonus or severance pay.
Liuzzi will receive $433,500 in severance pay, plus 7,100 shares worth a little over $250,000, DNB said.
The day before the Fourth of July, Barnes & Noble issued a vague press release announcing that the ailing company’s chief executive, Demos Parneros, had been fired, effective immediately and without severance pay, and removed from its board.
Earlier this month, many employees protested the lack of severance pay in areas including New Jersey and New York, according to CNN.
The Bradley Center board last year approved a pool of $100,000 in bonuses and up to 20 weeks in severance pay for key full-time employees.
Those affected will receive severance pay and aid such as financial counseling, the company said.
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Financial Definition of SEVERANCE PAY
What It Is
Severance pay refers to a payment from a company to an employee who is being discharged.
How It Works
Under certain circumstances, employers compensate an employee who is being discharged with a sum of money called severance pay. The specific amount may be related to the employee's salary and length of time with the company. In most cases, severance pay is paid to an employee who is being laid off due to internal changes within a company.
To illustrate, suppose Bob is one of two internal accountants for company XYZ. Due to restructuring, XYZ now needs only one accountant, and Bob's position is subsequently eliminated. Bob is laid off, as a result, and is given severance pay by XYZ when he leaves.
Why It Matters
In many cases, employees are made to leave a given company due to internal changes that eliminate their jobs. Severance pay is a compensatory measure that ensures that laid-off employees are compensated fairly not only for work done since their last pay cycle, but also for covering any expenses that may be incurred through no fault of their own between the time they leave their current job and find another position.
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