Severance pay for C-level executives in Ontario

Severance pay is crucial for bridging the employment gap when a C-level executive, such as a CEO or CFO, transitions between jobs. For these senior-level employees, Ontario severance packages must encompass all forms of compensation and benefits they were receiving at the time of termination.

Severance packages for C-suite executives are often intricate due to the various compensation factors involved. Here’s a breakdown of what these packages typically include and how they are determined.

What is included in a severance package for a C-level executive?

A comprehensive severance package for a C-suite executive in Ontario may include:

• Salary
• Bonuses or incentive payments
• Stock options
• Profit-sharing
• Employee discounts
• Benefits, such as:
  • Extended health benefits
  • Short-term and long-term disability insurance
• RRSP and or pension contributions
• Car allowance, including insurance and gas
• Membership dues
• Professional development expenses
• Restricted share units (RSUs)
• Long-term incentive plans (LTIPs)
• Retraining costs
• Outplacement counseling
• Legal fees
• Accounting fees

How much severance pay can a C-level employee get?

C-suite executives in Ontario can receive up to 24 months’ of severance pay, and potentially more, when they lose their job without cause.

That amount of severance an executive is entitled to is based upon several factors, including their:

• Length of service
• Position
• Age
• Ability to secure re-employment

A C-suite executive’s severance package can be limited by the terms outlined in their employment agreement. This agreement may contain a termination clause that restricts the severance entitlements to less than what the courts would typically award.

READ MORE
• Bonuses and severance packages
• Do I still get my bonus after I’ve been fired?
• Long-term disability claims for executives and professionals

Employment contract review for C-level executive

C-suite employees should have all agreements their employer or potential employer are asking them to enter into reviewed by legal counsel at Samfiru Tumarkin LLP, prior to execution. This is to ensure that they fully understand any implications on their future entitlements when they are fired or lose their job.

LEARN MORE
• Negotiating employment contracts for executives

Lost your job as a C-suite executive?

If you have lost your job as a senior executive, you should have your severance package offer reviewed immediately by experienced legal counsel at Samfiru Tumarkin LLP prior to accepting it. The majority of employees who are dismissed without cause, including C-suite employees, are owed more severance than the statutory minimums identified by each province or on the federal level.

Initial severance offers are often inadequate, meaning that you are owed more than the original severance package provides. When an employee does not receive the correct amount of severance pay as outlined by the courts, they have been wrongfully dismissed.

Employment lawyers for C-level executives

The employment lawyers at Samfiru Tumarkin LLP in Ontario, Alberta and British Columbia have decades of experience providing sound advice and representation to executive employees in Canada. In addition to reviewing, drafting and negotiating high-level employment contracts, our executive employment lawyers can expertly navigate negotiating executive severance packages to maximize compensation for C-level individuals.

We are the largest employee-side law firm in the country; our employment lawyers have helped countless executive-level clients secure proper payment after the loss of their job.

You can also try our free and anonymous tool, the Severance Pay Calculator, developed to help you understand more about how much compensation you may be owed.

Contact Canada’s most positively reviewed employment law firm today. Get the advice you need, the compensation you deserve.