Severance Package Negotiation - How?

Based on the most helpful WSO content, here’s how you can approach negotiating a better severance package:

1. Understand Your Leverage

• If your layoff wasn’t performance-related and your mid-year review was positive, you can use this as leverage. Highlight your contributions and the fact that this decision was based on "staffing needs," not your performance.
• Research severance norms for your level and role in NYC, especially at BBs, to ensure your ask is reasonable.

2. Delay Signing the Release Letter

• Do not rush to sign the release letter. Once signed, you lose leverage to negotiate further.
• Use this time to consult with an employment attorney if possible. They can help identify any legal or contractual obligations the bank might have overlooked.

3. Key Points to Negotiate

• Severance Payment: Argue for an extension of severance based on your tenure, performance, and the abrupt nature of the layoff.
• Vested RSUs: If you have RSUs that are close to vesting, request that they accelerate the vesting schedule or include them in your severance package. Highlight that these were part of your compensation and should not be forfeited due to a non-performance-related layoff.
• Healthcare Benefits: Request an extension of COBRA or healthcare coverage beyond the standard period.
• Outplacement Services: Ask for career transition support, such as access to recruiters or resume services.

4. Frame Your Arguments Professionally

• Keep the tone professional and collaborative. Avoid sounding entitled or confrontational.
• Example: “Given my positive performance reviews and contributions to the team, I believe an extended severance package and inclusion of my vested RSUs would be a fair acknowledgment of my time and efforts at the firm.”

5. Involve HR Strategically

• HR is often the gatekeeper for severance negotiations. Present your case to them with clear reasoning and documentation of your performance.
• If you feel your manager or group head might not support you, focus on HR as they are responsible for ensuring fair treatment.

6. Be Prepared to Walk Away

• If the bank is unwilling to budge, weigh the pros and cons of signing the release letter as-is. Sometimes, pushing too hard can backfire, but if you have strong leverage, it’s worth the effort.

7. Consult Legal Counsel

• If you suspect any unfair treatment or if the severance package is significantly below industry norms, an employment lawyer can help you navigate the negotiation process effectively.

By following these steps, you can maximize your chances of securing a better severance package while maintaining professionalism. Good luck!

Sources: https://www.wallstreetoasis.com/forum/job-search/negotiating-offer-before-during-and-after-interview-follow-up?customgpt=1, Negotiating Participation - Boutique SoCal Development shop, https://www.wallstreetoasis.com/forum/job-search/offer-rescinded-after-negotiating-salary?customgpt=1, Minimum Time Before Lateralling?, Insultingly Low Bonus