How do I know if my severance agreement is appropriate?

6. How do I know if my severance agreement is appropriate?

To determine whether your employer's severance agreement is "legally" appropriate, you need the answers to two questions: first, does the agreement comply with the controlling state and federal law?; and, second, does it properly take into account the provisions of your employment agreement, stock option plan, bonus program or other contract between you and your employer? Only a lawyer skilled and experienced in employment, corporate, securities and/or tax law is qualified to make that evaluation.

Another measure of "appropriateness" is whether you believe the deal is "fair" in light of all of the circumstances. If it is not, you need to work to improve the financial and other terms of the agreement (see the next question and answer).

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