SEVERANCE
ARRANGEMENTS
Shearman & Sterling LLP 96 | Severance Arrangements
of the Top 100 Companies have adopted policies capping the severance
multiple paid to NEOs without shareholder approval. In all but four instances,
the severance is limited to 2.99 times the NEO's base salary and annual
bonus. In one instance, the multiple is 2.99 for the CEO and 1x base and bonus
for all the other NEOs. Two companies utilize a 2x multiple, with one of those
companies averaging the annual bonus paid over the three previous years.
The fourth company limits the severance to one times base salary.
SEVERANCE
ARRANGEMENTS
of the Top 100 Companies
provide severance benefits
to one or more of their NEOs
65
of these 65 companies provide
severance benefits through
individual agreements
14
25
$
