Generous severance packages are sometimes referred to as golden parachutes, although sticklers say that this phrase properly applies to payments triggered when an executive is terminated following a takeover or merger. Whatever the terminology, paying those accused of wrongdoing more money than their purported victims receive—and many times what lower-level employees will earn over their entire careers—is what public relations pros call “bad optics.”
The reason why scandal-plagued companies are willing to pay millions in severance to allegedly bad actors is because they believe it’s the best way to put a crisis behind them and move on, explained Alan Johnson, managing director at Johnson Associates, an executive pay consultancy in New York City.
Source - Read More at: www.shrm.org
Thought provoking article that raises the question of how much is it truly worth to pay a problem employee to leave?
How much is too much?
And above that, what are the public relationship ramifications as well as the ethics involved in paying someone an ‘exit fee’ that is more than the accusers are granted?