Downsizing: How managers avoid the most expensive mistakes when it comes to severance pay
Waiver, bonus, company car: every detail counts in negotiations – managers can easily give away a five- or six-figure sum. A checklist and sample calculations show what matters.
A German insurance company's marketing chief was offered a severance package of €700,000, but a lawyer warns that signing such a contract too quickly can be costly. In Germany, many companies are currently downsizing, with the industry cutting over 120,000 jobs last year, and Volkswagen recently eliminating 5,500 management positions worldwide.
When negotiating a severance package, it's essential to consider details beyond the sum offered, such as pension contributions, bonuses, and stock options, as these can add significant value. A lawyer can often negotiate a higher payout, and employees should be aware of their rights and the possibility of retaining certain 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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