Severance Package

[mr. severance]

What is the name of your state?undefined I both live and work in NYC. My company, a large financial services company, is being acquired. I was notified today that I will severed post closing. Existing company policy is one week severance for each year of service automatically; and then an additional week for each year of service if you sign a release form. I haven't seen the release yet but it certainly will waive the right to sue. Additional benefits (medical, etc.) come with signing the release. My question relates to my 2004 incentive comp ("IC") which, as part of their initial severance package, they are not planning to make any payments for. IC is a major part of my overall comp (last few years it was roughly 40% of total comp) and given we are looking at a mid July departure this seems wrong. Also, 2 years ago I know that when we outsourced a different asset class and the in-house managers were severed mid year those professionals did get pro-rated bonuses. Performance is not an issue for me as I've always been a top performer and that has continued this year. Any thoughts would be appreciated.

 

[BelizeBreeze]

Well now, since you didn't ask a LEGAL question, the only thought I have is to find a new job fast.

 

[mr. severance]

Clarification

The Legal question is do they have the right to sever me mid year without providing some compensation for my incentive comp?

 

[BelizeBreeze]

And the answer is, unless you can hold your employment contract up to the monitor so I can read it, I have no idea.

Unless, of course, you HAVE no employment contract which stipulates the severance package. Then the answer would be Yes, it's legal.

 

[cbg]

Severance is not required by law. It depends entirely on what your contract says.