American Bar Association American Bar Association

Severance and Other Termination Arrangements: Planning and Executing Defensible Goodbyes

SPONSORS: The Sections of Business Law; Health Law; Labor and Employment Law; Real Property, Trust and Estate Law; Taxation; Tort Trial and Insurance Practice; and the American College of Employee Benefits Counsel

Program Information

Untitled Document

A 90-minute TeleConference

1:00-2:30 pm ET / 12:00-1:30 pm CT / 11:00 am-12:30 pm MT / 10:00 am-11:30 am PT

Cynthia Marcotte Stamer
, Cynthia Marcotte Stamer, PC, Addison, TX

Peter Miterko
, Pearl Meyer & Partners, New York, NY
Tara Silver Malyska, Grant Thornton, Dallas, TX
Charmaine L. Slack, Jones Day, New York, NY
Michael A. Tilghman, II, Bailey & Ehrenberg PLLC, Washington, DC

Well-designed severance and other pay on separation arrangements and agreements can play critical roles in recruiting and retaining key executives and other employees and help settle exposures from terminating employees. To realize these benefits, however, companies seeking to use these tools and their counsel must negotiate a complicated web of increasingly complex legal, financial and political traps. This experienced panel of experts will explore evolving legal requirements, highlight common challenges and traps, and share practical tips for designing, negotiating and executing severance pay plans, separation agreements and other termination pay arrangements including:

  • Current market data and trends on severance amounts, designs and practices for executives and nonexecutives
  • IRC 409A, 280G and 4999 and other tax traps and tricks impacting severance pay design and payment
  • ERISA applicability and implications to severance arrangements
  • COBRA, 105(h) and other issues impacting negotiation of health and other welfare benefit rights on termination
  • ADEA and other requirements for securing enforceable waivers
  • Corporate, ERISA and other fiduciary responsibility traps for the unwary
  • Compensation committee approval and independence requirements
  • Say on pay and other common shareholder and corporate challenges impacting executive severance arrangements
  • Avoiding the Hewlett Packard "No" shareholder vote
  • Due diligence, problem solving and strategies corporate transactions and restructuring
  • Best practices for planning and administering executive severance near retirement, acceleration of equity vesting and option term extension as part of severance
  • Other practical tips and insights

Severance and Other Termination Arrangements: Planning and Executing Defensible Goodbyes
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