Recently, WeWork Founder Adam Neumann’s USD 1.7 billion severance package has left the corporate fraternity awe-struck. Here are the top 5 hottest corporate handshakes from the last decade that are sure to blow your mind.
“Joined a job, what’s your salary package?” is one of the most indiscriminate questions asked worldwide. But, have you ever faced a question “What if the job isn’t there?” or “What’s the severance package?” Guess most of us haven’t.
Have you ever faced a question “What if the job isn’t there?” or “What’s the severance package?” Guess most of us haven’t.
The severance package is a set of benefits or an amount of money (sometimes both) that an employee is qualified to get while leaving the job. The relieving could be due to multiple reasons – non-performance, allegations, violation of policies, medical grounds, change of geographic location, voluntary retirement or retirement.
Hottest Handshakes Of the Corporate World In The Last Decade
Well, as a matter of fact, the “after-job” details are not even disclosed by the recruiter. As dreadful as it is, no one wants to talk about the repercussions of losing a job, do we?
We have seen and read the news of “bye-bye good old company,” where many executives make millions of dollars as parting amount. Multiple X times higher than their salaries.
So much so, that some severance packages have made for the hottest news and made celebrities out of C-Suites who are in fact being pushed out of a company for arguably underwhelming in their core competency.
#1 $1.7 billion, WeWork Founder, Adam Neumann
The founder of WeWork Adam Neumann successfully negotiated a severance package for an amount of $1.7billion with Softbank.
After deducting the amount vested towards his shares and loans, he could still use $185 million making it the biggest split-up gift in the history of job terminations.
Let us dig in to know more about some of the biggest severance packages that some of the famous employees have managed to receive in the past.
#2 $44 million, Ex- CEO, Marissa Mayer, Yahoo
When Verizon was about to amalgamate “once internet giant” Yahoo, Marissa Mayer was laid off with a gigantic sum of $44 million as a severance package in 2016.
The then 41 years old Mayer, stood to collect $41 million as stock options and awards along with $3 million in cash.
In an interview with CNBC, Warren Buffet said that entitling an eight-figure amount as a severance package sets a benchmark and paves the way to more such negative cash flows in the years to follow.
#3 $40 million, Former CEO, Mark Hurd, HP
Former CEO of Hewlett-Packard, Mark Hurd was laid off with severance and other grants worth an estimated $40 million. Along with $12 million in cash severance, Hurd gets to keep $8.9 million in stock options, $12.7 million in performance-based stock units and, more
Mark Hurd was charged with sexual harassment by Jodie Fisher, a marketing consultant with HP. The company however cleared off the charges as he was not found guilty of violating any company sexual harassment policy.
Be that as it may, amidst all the allegations and trials, Hurd presented an inaccurate expense report which was the major factor for him to be asked to step off the high table.
Interestingly, Mark Hurd was also a co-CEO alongside Safra Catz until his death recently in October 2019.
#4 $65.7 million, Former CEO, Sanjay Jha, Motorola
Sanjay Jha was the “Prime Merlin” to leading Motorola to successfully merge with Google. Even though he was offered the position of Co-CEO, he resigned as the CEO of the company with a humongous sum of $65.7 million. This includes $52.4 million of long-term equity and incentive.
#5 $35 million, Former CEO, Jeff Smisek, United Airlines
United Continental Holdings Inc. rewarded an unreasonable amount of approximately $35 million as a severance package after he was fired over bribery along with two other officials in 2015.
Later in 2017, a pension Fund organization sued the company over an unnecessary expenditure for a bribery scandal convict.