Executive employees, such as those in the C-Suite, may be entitled to a particular form of severance pay, known as executive severance. The exact nature of an executive severance package will depend on a number of factors, including the specifics of the individual’s employment agreement. Contact our executive severance lawyers today if you have been given an executive severance.
What Is Executive Severance in Ontario?
Executive Severance is the same as severance, but specific to individuals in executive roles, such as C-Suite employees. This is often a more complex agreement than typical severance, because of the multi-faceted terms of their employment. In addition to severance pay, an executive severance agreement may include:
- Insurance benefits
- Stock options
- Unemployment resources such as outplacement assistance
- Confidentiality agreements
- Non-compete clauses
- Return of property clauses
- Pension contributions
- Employee discounts
- Profit-sharing
- Bonuses
- Accounting fees
- And more
How Is Executive Severance Calculated?
The calculation of executive severance draws on many different components. It depends on the agreement that was entered into upon the beginning of the employment relationship. Other factors may include the length of the employee’s service, the role they had, their age, whether there is availability of comparable employment elsewhere, and more.
To What Severance Am I Entitled as a Senior Executive?
The type of severance to which you are entitled as a senior executive may depend on the specific terms of your agreement. Typically, this includes:
- Severance pay
- Bonuses
- Insurance
- Contributions to your RRSP or pension
- Out placement assistance
- Accounting fees
- And more
What Are Examples of Bonuses or Incentives That Can Be in an Executive Severance Package?
There is a wide range of possibilities as to bonuses or incentives that can be in an executive severance package. Depending on the nature of the employment, these may include:
- Sales percentages
- Percentages of firm’s growth
- Bonuses due to stock options
- And more
Bonuses or incentives often depend on how the employer has decided to compensate the employee with bonuses over the course of their employment.
What Items Can I Negotiate Into My Executive Severance Package?
Items to negotiate may include:
- Insurance
- Severance pay
- Unused vacation
- Profit sharing
- Stock options
- And more
Negotiable items typically depend on the agreement that you have with your employer. Speak with our Toronto executive severance lawyers today to learn what may be possible in your case.
When Should I Speak With a Lawyer About My Executive Severance Package?
You should speak with an employment lawyer immediately after you have received notice of your termination, and before signing any executive severance package that has been provided to you.
What Should I Prepare in Order to Speak With an Employment Lawyer About Executive Severance?
Before speaking with a Toronto employment lawyer about executive severance, you should prepare:
- Your T4s
- Your employment agreement
- Any correspondence from the employer about your termination
- Any information related stock options
- Any information related to insurance benefits
- Any information related to your unused vacation
- Any RRSP contributions or pension contributions
- An outline of how long you’ve worked at the company
- Any other information you may feel is relevant
Contact Our Toronto Employment Lawyers Today For a Free Consultation
To learn how Howie, Sacks & Henry LLP may help you at any stage of negotiating your executive severance package, or more, contact us today to schedule your free consultation. Our executive severance lawyers would be happy to discuss your specific circumstances and see how we may be of service to you.
*Please be advised that the content of this article is intended as a general overview on the subject of executive severance in Ontario, and should not be construed as legal advice. For legal advice, please consult with an employment lawyer.
