Severance pay: How to make the most of your job loss
Anyone who hastily accepts a supposedly high severance payment may miss out on a lot of money. This is because executives often have significantly more lucrative options.
German companies such as Bayer, Mercedes, and VW are offering large severance packages to encourage employees to leave voluntarily. However, labour law experts Christoph Abeln and André Kasten warn that accepting such offers without careful consideration can lead to significant financial losses. They advise executives to consider alternative arrangements, such as multi-stage transition payments, to ensure they do not forfeit valuable benefits like pension plans, bonus payments, or stock options.
Abeln cites an example of a manager who would have been left with €360,000 after tax from a €700,000 severance package, but would have lost €400,000 in pension benefits.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- Severance pay: How to get the maximum out of your job loss handelsblatt.com
