News briefs (Oct. 7, 2002)

Severance more generous

Woodcliff Lake, N.J. — Half of firms surveyed by career services firm Lee Hecht Harrison have changed severance offerings in the last few years, with 68 per cent putting more money into packages. The survey of more than 900 American HR executives found CEOs at large corporations typically receive 24 months’ salary and the continuation of health and dental benefits. Most organizations provide outplacement services. Retention bonuses for employees facing termination are offered by about half of firms polled, up from a-third that offered them three years ago.

Middle managers getting severance deals upfront

Gig Harbor, Wash.
— In a hiring process once reserved for senior executives, mid-level managers and professionals are negotiating severance packages before coming onboard, reports information and e-learning firm EdGate. In addition to cash compensation, items such as continued benefits and insurance are being sought.

Deferred comp meets tough times

Houston
— American executives who deferred portions of their income over the past several years to save on taxes may regret the decision in this time of high-profile bankruptcies, reports the Houston Chronicle. With Enron and other giant corporations filing for bankruptcy, thousands of executives with deferred income plans are finding themselves at the bottom of the list of creditors owed money.

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