Employees Illness Complicates Termination Process A manufacturer located in Orange County, Calif., is experiencing higher employee benefit costs, declining sales and decreasing margins on its products. The company, which has 2,500 employees, decided to save costs by decreasing the size of its management team and selecting one of its high-level executives for termination.
The employee at issue is a 25-year veteran of the company, over the age of 60, and one of the highest paid executives. He earns approximately $175,000 per year and is entitled to a $50,000 bonus per year.
He has a range of stock options, some of which have vested and others which are due to vest within 60 days. His past job appraisals do not evidence any significant performance problems, but the appraisals for the executive team are not very thorough.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
