What is the best way to negotiate a severance package in an executive contract?

2 Know your options

The second step to negotiating a severance package is to know your options and alternatives. A severance package typically consists of several components, such as cash payments, stock options, health insurance, outplacement services, and non-compete agreements. You can prioritize the components that matter most to you, and be flexible on the ones that are less important. You can also explore other options, such as a consulting contract, a referral bonus, or a positive recommendation letter. Knowing your options will help you create a win-win scenario for both parties, and avoid settling for less than you deserve.

3 Know your timing

The third step to negotiating a severance package is to know your timing and leverage. The best time to negotiate a severance package is before you sign the contract, when you have the most bargaining power and influence. You can use this opportunity to clarify the terms and conditions of your severance, and secure a fair and reasonable deal. However, if you are already in the contract, you can still negotiate a severance package when there is a change in your situation, such as a merger, a reorganization, or a performance review. You can use this as a trigger to initiate a conversation with your employer, and present your case for a better severance package.

4 Know your strategy

The fourth step to negotiating a severance package is to know your strategy and tactics. The strategy is the overall approach and objective of your negotiation, while the tactics are the specific actions and techniques you use to achieve it. You can choose a strategy that suits your style and situation, such as collaborative, competitive, or accommodating. You can also use tactics that enhance your position and persuade your employer, such as framing, anchoring, concession, or silence. Knowing your strategy and tactics will help you plan and execute your negotiation effectively, and achieve your desired outcome.

5 Know your rights

The fifth step to negotiating a severance package is to know your rights and obligations. As an executive, you have certain rights and protections under the law and your contract, such as the right to receive your earned wages, benefits, and bonuses, and the right to be treated fairly and respectfully. You also have certain obligations and duties, such as the obligation to fulfill your contractual obligations, and the duty to act in good faith and loyalty. Knowing your rights and obligations will help you avoid any legal issues or disputes, and ensure that your severance package is compliant and enforceable.

6 Know your emotions

The sixth and final step to negotiating a severance package is to know your emotions and how to manage them. Negotiating a severance package can be a stressful and emotional process, especially if you are facing a difficult or unexpected situation. You may feel anger, resentment, sadness, or fear, which can affect your judgment and behavior. You can manage your emotions by acknowledging them, expressing them constructively, and seeking support from others. You can also focus on the positive aspects of your situation, such as the opportunity to pursue new goals, learn new skills, or expand your network. Knowing your emotions and how to manage them will help you maintain your composure and dignity, and negotiate a severance package that reflects your value and potential.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?