Outplacement for executives: supporting senior leaders through a layoff

1. Everyone is watching. The executive's team, peers, board, customers and industry all notice how the departure is handled.
2. The story matters. How the departure is described will follow them into every conversation about their next role.
3. The market is smaller. There are fewer senior roles, and many are filled through networks, boards and search firms rather than postings.
4. The terms are more complex. Equity, deferred compensation, restrictive covenants and sometimes a transition period all need to be worked out.
5. It can be lonely. Senior leaders often have few people they can talk to openly, and their title may be closely tied to how they see themselves.

1. Have the right person tell them. Their manager, the CEO or the board chair, privately and in person where possible. Not HR alone, and not by email.
2. Write the announcement with them. Internal and external messages that are accurate, respectful and consistent with what the executive will say. Recognize what they contributed.
3. Offer them the choice to tell their own team. Many leaders want their team to hear it from them.
4. Agree on references. Who will speak about the executive's work, and what they will say.
5. Give them time to tell their family before anything is announced.
6. Plan the timing. Who is told first: the board, the executive's team, customers and the public.
7. At public companies, involve securities counsel early. The departure of certain officers, including the CEO, CFO and other named executive officers, must generally be disclosed on Form 8-K within four business days of the decision or notice, which can be before the terms are final. Related equity transactions can trigger Section 16 filings within two business days.

1. Encourage independent legal advice. Executives should have their own counsel review the agreement. Some companies contribute to the cost.
2. Be clear about equity and deferred pay. What vests, what is forfeited, when, and whether any clawback policy applies. Have counsel check the tax rules on the timing of severance and deferred pay, and, after a change in control, the golden parachute rules.
3. Review restrictive covenants. Non-compete and non-solicitation terms affect the search directly, and some states limit them. Make sure the executive understands what they can and cannot do.
4. Consider mutual non-disparagement. It protects both sides, and it tells the executive the company will speak about them with respect.
5. Define any transition period. If they will stay on to hand over, agree on the role, the length and the end date in writing.
6. Follow the same release rules. If the agreement releases age discrimination claims, employees 40 and older must get time to consider and revoke it, as with any employee.

1. A coach who knows the level. Someone who has worked at, or alongside, senior leadership, and can be a peer in the conversation.
2. The story. Help shaping how they describe the departure and what they want next, honestly and confidently.
3. A network and search firm strategy. Many senior roles are never posted. Much of the search runs through relationships.
4. More than one path. A full-time role, a board seat, advisory or interim work, or something new.
5. Negotiation support. For offers that are often complex.
6. The whole person. Room to talk about identity, family and what matters to them now, not only the search.
7. Confidentiality. What they share with their coach stays with their coach.
8. No end date. Senior searches can take longer. Support should last until they land.

For questions to ask any provider, see our guide to what outplacement costs and how to choose a provider.

• Announcing the departure before the executive has told their family.
• A company message that contradicts what the executive says.
• Assuming a senior leader doesn't need support.
• A generic program built for early-career job seekers.
• Support that ends on a date, landed or not.
• Inconsistent references from former colleagues.
• Walking a senior leader out in front of their team.