Executive severance agreements: benefit or burglary?

Executive Overview While executive compensation in general has been subject to critical attention, we argue here that executive severance agreements continue to have the potential to be far more embarrassing for America at large, the specific corporation, and any executive involved. We suggest that such severance agreements triggered by executive terminations, corporate takeovers, and bankruptcy seem difficult to justify. We provide some rationale for the persistence of such policies, and suggestions whereby executives and boards of directors may develop severance programs that are far less subject to criticism.