ASK THE HEADHUNTER Does severance pay make sense?

[deanwebb]

Does severance pay make sense?

Question I’m curious about how companies determine severance pay packages. I assume there are state laws that dictate minimum severance amounts, or it seems there would be no severance packages at all. But some companies give more than that. One recently gave its laid-off employees six months of severance, which is very generous in these times. But why? While that’s good news for the employees, why would a company or its shareholders want to give more than it has to? I’m also curious why upper management receives more severance. I understand that CEOs and their echelon often have prearranged golden

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