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3 trends in how private companies are handling severance

Joshua Mayers

Severance and the accelerated vesting of equity awards upon a change of control aren't the most glamorous topics. But they are important. 

We teamed up with compensation data firm J.Thelander Consulting to get more insight into how private companies are navigating these potentially tricky situations. Here are some key takeaways:
 

  • Paying severance in a lump sum has increased in popularity and now equals continuing payments. 
  • A plurality of respondents in all three surveys selected 7-12 months as the most common timeframe for the length of CEO severance. The 1-3 month timeframe has notably increased over the last two years.
  • Private company CEOs who receive accelerated vesting of equity awards has trended upward to 86%.


Explore the figures further in the charts below.

To get more data, including details on single-trigger versus double-trigger vesting acceleration, click here to take Thelander's Private Company Change of Control & Severance Survey. You'll receive a complimentary report for your participation.
 


Featured image via francescoch/iStock/Getty Images Plus
 

To get access to more compensation data, take Thelander's Private Company Change of Control & Severance Survey.

     For more content related to private company and investment firm compensation, check out other articles we've published with J.Thelander Consulting or contact Thelander directly.