Severance Negotiation: What Most People Leave on the Table

Most people sign their severance agreement without pushing back. Companies expect negotiation — the initial offer is rarely the final offer. You have leverage you may not realize: the company wants a clean separation, a signed release, and no legal risk. That is worth something.

You typically have 21 days to review a severance agreement (45 days if you are over 40, under the OWBPA). Use that time. Key things to look for: non-compete clauses and their scope, non-disparagement clauses (do they apply both ways?), general release of claims, COBRA subsidy or continuation, equity vesting or acceleration language, reference policy, and any clawback provisions.

Severance pay amount — ask for more weeks or months. The standard "one week per year of service" is a starting point, not a rule. COBRA subsidy — ask the company to cover your health insurance premiums for a defined period. This is often easier for them to approve than additional cash. Equity — if you have unvested stock or options, ask about accelerated vesting or extended exercise windows. Outplacement support, extended laptop/equipment retention, reference letters, and LinkedIn recommendation commitments.

Keep it professional and factual. Frame your ask around mutual benefit: "I appreciate the package. Given my [tenure/contributions/transition complexity], I would like to discuss [specific ask]. I want to sign something that feels right for both sides." Never threaten. Never bluff. If you have real legal concerns, consult an employment attorney before signing.

Consider legal counsel if: you suspect discrimination or retaliation, the non-compete is broad, you are being asked to waive specific legal claims, or the package is significantly below industry norms. Many employment attorneys offer a one-hour severance review for a flat fee ($300–$500). That investment often pays for itself many times over.