Co-authored by Claire Wyckoff and Nat Stoddard

When Bob Nardelli was ousted as CEO, it cost Home Depot $210 million. Pfizer gave Hank McKinnell a $123 million package, Gary Forsee received $40 million from Sprint, Carly Fiorino, $23 million from Hewlett Packard, and Richard Grasso, a highly controversial $188 million from the New York Stock Exchange. While not as impressive as the headline “funny money” payments to a handful of executives, the authors’ experience with hundreds of senior-level executives’ severance provisions indicates there is still cause for considerable concern.

Indeed, our experience has led us to research the issue further and to start developing new processes for reducing the rate of turnover in the C-suite. Here is brief outline of what we’ve learned.


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