Insights
Research Report
2023 Executive Change-in-Control (CIC) and Non-CIC Severance Practices
Research Report | By Noah Kaplan, Eva Gencheva, Alyssa Imelio
Executive severance practices have evolved over the last decade, with changes influenced in part by large institutional investors and proxy advisors. In general, cash severance multiples have declined, and provisions such as single trigger severance protections and excise tax gross-ups are generally only found in legacy arrangements.
This report provides a summary of current market severance practices for Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs), with specific focus on arrangement types, qualifying termination definitions, cash severance, equity treatment, continued health and welfare benefit duration, excise tax treatment, and restrictive covenants.
Noah Kaplan
Managing Director & Head of San Francisco Office
Noah advises clients across a diverse range of industries and at various stages of the business life cycle, covering smaller private/pre-IPOs up to mature Fortune 500 companies. This includes work with technology, life sciences, media, gaming and hospitality, restaurant, engineering and construction, REITs, and specialty finance companies.
Eva Gencheva
Principal
Eva Gencheva joined the firm in 2012 after working in the Executive Compensation & Rewards consulting practices of Hay Group and Towers Watson. Eva supports the firm’s engagements with Board Compensation Committees through the development and presentation of analyses pertaining to peer group development, short-term incentive plan design, equity plan design, compensation reviews and governance matters.
Alyssa Imelio
Consultant
Alyssa joined the firm in early 2020 from Schneider Electric, where she had been in a leadership development program in internal consulting.
Additional Publications
By Noah Kaplan
June 17, 2024
Succeeding with Stock Plan Proposals
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November 16, 2023
2023 Executive Change-in-Control (CIC) and Non-CIC Severance Practices
Read More
October 21, 2022
Shareholder Proposals to Limit Severance Aim to Improve Governance But May Have Unintended Consequences
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October 1, 2009
The 2009 Director Compensation Survey
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