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CBS CEO Les Moonves Gets $120 Million Severance Package

Started by Sam, September 10, 2018, 07:28:12 AM

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Hi Folks,

If Les is getting a $120 million severance package after multiple incidences of power abuse at his company, why do people who do no such thing think they can't get any severance at all?

I truly want to know why, as a big proponent of encouraging everyone to negotiate a severance instead of quit.





maybe many dont know its even possible or its nothing in employee handbook
i never saw any mention of severance pay in employee handbook of  few companies i worked  ,including big public company
maybe its only for executives in top C-execs ?


 A severance is definitely not for executives only. Severance packages are not advertised by the company because they cost the company money. But I bet most employees don't read their employee handbook either.

Employees have way more power and benefits than they realize. I hope these crazy examples of $120 million severance packages help wake employees up to their power.



Sam, I think the situation is a little different with Les (and others of his ilk).  His settlement package was probably a twenty page section of an employment contract a hundred plus pages long.  His settlement package was probably initiated years ago and adjusted every few years with escalation clauses to make severance more remunerative to Les as Les became more valuable to CBS as time went on.  I recall (thought I heard) that Les's severance package was reduced by $20 million, the $20 million provided to groups battling sexual harassment on the job type issues.

I a different question for the average joe is "how important am I to my employer?"  The more important average joe is to the employer the greater chance he/she will have an employment contract, part of which would include terms of severance - for cause, not for cause, short notice, non-compete issues, etc.  For those without an employment contract, I think timing is probably crucial, e.g., a math teacher at a private school might have greater success at the beginning of the school year and agreeing to stay until Winter break than a math teacher negotiating in June, when class is almost over for the Summer, for the upcoming school year. 

A quick Google gets "As of 2016, there were 28.8 million small businesses, which accounted for 99.7% of US businesses. ( Source: SBA Gov 2016)".  I suspect it is much harder to get a severance package from a small business than a large one, e.g., Boeing or Chase Manhattan Bank.

It seems smart to me to prepare for, then ask for, a severance package and hopefully be pleasantly surprised. However, I also suspect the chances are small one would ever get a severance package unless one is requested.