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Severance Pay

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NEWS
April 9, 1992
An ordinance that would have awarded up to six months' severance pay to several Bell Gardens city employees has been scaled back to allow employees who are fired without cause to collect up to three months' salary. The ordinance covers nine of the city's highest-paid employees. The original ordinance was passed at the final meeting of the former City Council in March, and it promptly drew criticism from supporters of the new council majority that took office last month.
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BUSINESS
October 9, 2013 | By Stuart Pfeifer
Two former top executives have sued Freedom Communications Inc., owner of the Orange County Register, saying the company has failed to pay them a combined $4.5 million in severance pay. Mitchell Stern, Freedom's chief executive from 2010 to 2012, and Mark McEachen, its chief financial officer during that time, stayed with the company after it was acquired by entrepreneur Aaron Kushner in July 2012. The executives said in an arbitration filing that they agreed to postpone their severance payments - $3.3 million to Stern and $1.2 million to McEachen - because of the company's "precarious finances.
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NEWS
April 19, 1990
The City Council voted 3 to 2 to increase City Manager Paul Brotzman's severance pay from six to nine months if he is dismissed from his position with the city. The severance protection, part of a benefits package, was granted in part because Brotzman had not requested a pay increase this year. Brotzman was hired by the city in 1985. Councilman Paul Koretz, who voted against the provision, said that nine months severance is "too long."
CALIFORNIA | LOCAL
July 13, 2013 | By Garrett Therolf and Jason Song
Four Los Angeles County government executives who retired or resigned since 2010 received tens of thousands of dollars in severance pay historically reserved for employees who were fired, a Times review found. Chief Executive William T Fujioka's office authorized the nearly $400,000 in severance payments, according to documents obtained through the state Public Records Act. Fujioka's office told The Times in 2010 that severance was provided only if a department head's termination was initiated by a public vote of the Board of Supervisors.
BUSINESS
June 27, 1990 | From Associated Press
Peter A. Cohen, who was ousted as chairman of Shearson Lehman Hutton Inc. earlier this year, will receive a severance package worth about $10 million, individuals familiar with the pact said today. Cohen, 43, was ousted by American Express Co.'s chairman, James D. Robinson III, as part of an overhaul designed to stem mounting losses and morale problems at the nation's second-largest securities firm. Cohen will receive $2.
BUSINESS
December 16, 2005 | From Bloomberg News
HealthSouth Corp. founder Richard Scrushy, who was cleared of orchestrating a $2.7-billion fraud at the company, sued HealthSouth for $70 million that he said he was owed in severance pay and bonuses. The lawsuit filed in Jefferson County, Ala., says that under a 2002 employment agreement, Scrushy is entitled to the pay after being acquitted in June of accounting fraud charges, Scrushy spokesman Charlie Russell said. Scrushy was fired from the company in March 2003 and quit the board Dec.
NEWS
March 29, 1989 | From Associated Press
Louis W. Sullivan, secretary of health and human services, on Tuesday reversed his decision to forfeit severance pay earned during his previous job as a medical school president. In a statement issued by his office, Sullivan said he will get $215,000 in severance benefits that had been included in his contract as president of the Morehouse School of Medicine in Atlanta.
CALIFORNIA | LOCAL
November 4, 1991 | TERRY SPENCER
The City Council on Tuesday will consider a plan to raise the severance pay that City Manager James D. Ruth will receive if he is ever fired. Under the proposal, if Ruth is fired for any reason except a felony conviction, he will continue to receive his $137,812 annual salary, his medical insurance and his $475-a-month car allowance for one year. Currently Ruth, who became city manager in March, 1990, would receive six months' salary if fired.
BUSINESS
June 20, 1990 | United Press International
The Pentagon, facing the prospect of laying off enlisted personnel, endorsed the idea today of severance pay for soldiers thrown out of work as the U.S. military shrinks in the 1990s. Four senior enlisted men told a Senate Armed Services personnel subcommittee that some sort of payment is the top priority for members of the Army, Navy, Air Force and Marines who may lose their jobs. There are more than 2 million men and women in U.S.
BUSINESS
April 21, 1996
ALSO: - Raises Are Up to the Employer - An Applicant's Age Might Apply - Benefits for Spouse Who Must Go Q. I have been working for my company for over four years. This week the company laid me off with no advance notice and no severance pay. According to the company personnel policy manual, two weeks' notice is expected from employees before resigning. It also says for layoff matters that any advance notice will be related to the business conditions requiring the layoff.
WORLD
May 12, 2013 | By David Zucchino, Los Angeles Times
CHARIKAR, Afghanistan - Abdul Shakour was working the night shift at Bagram air base repairing American vehicles when he was called to an emergency meeting. The news was bad: Shakour and 22 other Afghan mechanics were being laid off. After seven years at Bagram, Shakour was unceremoniously shown the door last month. He was told to return the next day to turn in his security badge and collect his final paycheck. "There aren't as many vehicles to fix and not as many soldiers around, so they don't need us anymore," Shakour said outside the base, speaking with a thick accent the English he had learned from American civilians and troops.
BUSINESS
March 19, 2013 | By Hugo Martin
American Airlines is defending a plan to pay its departing chief executive a severance payout of nearly $20 million after the airline completes a merger with US Airways. The parent company of American Airlines, AMR Corp., which filed for bankruptcy in 2011, recently submitted a request to a bankruptcy court to make the payment to its chief executive, Thomas Horton. After the merger is completed, Horton will be replaced by US Airways Chief Executive Doug Parker and will take the post of board chairman for the new airline.
CALIFORNIA | LOCAL
August 2, 2012 | By Jeff Gottlieb, Los Angeles Times
The police chief who was ousted after it was revealed that he and other city leaders in Bell were drawing enormous salaries has sued his former employers for severance pay. Randy Adams, who is now one of the highest-paid public pensioners in California, stopped working for the small, working-class city shortly after The Times revealed the high salaries paid to the former chief, as well as to Chief Administrative Officer Robert Rizzo and Angela Spaccia,...
BUSINESS
November 11, 2009 | Bloomberg News
Toyota Motor Corp. may shoulder almost all the costs of closing a California joint-venture plant because the new owner of General Motors Corp.'s 50% stake doesn't plan to fund worker severance pay and other expenses. "Motors Liquidation is not contributing at all" to the closure costs, said Tim Yost, a spokesman for Detroit-based Motors Liquidation Corp., which took over discarded assets from GM as part of the carmaker's bankruptcy reorganization. "We don't believe there will be a requirement for us to do so."
NATIONAL
December 11, 2008 | Robert Mitchum, Mitchum writes for the Chicago Tribune.
Laid-off workers at Republic Windows & Doors agreed to leave the closed Illinois plant they've been occupying in protest for six days, accepting a deal Wednesday night that will give each of them about $6,000. Workers will receive about eight weeks' severance pay, accrued vacation time and two months of healthcare coverage, officials said. About $1.75 million will be put into an escrow account to be supervised by the workers' union. "The occupation is over.
CALIFORNIA | LOCAL
December 5, 2008 | Paul Pringle, Pringle is a Times staff writer
Early last year, Alejandro Stephens' long tenure as president of one of California's biggest union locals came to an end after the labor organization he headed merged into a larger local. The Service Employees International Union sweetened Stephens' exit with severance payments and other compensation that totaled nearly $180,000, said union spokeswoman Michelle Ringuette. A condition was that Stephens give up the salary he was receiving from Los Angeles County, Ringuette said.
BUSINESS
September 25, 2001 | LISA GIRION and NANCY CLEELAND, TIMES STAFF WRITERS
American Airlines said Monday that it is invoking an emergency clause in its union contracts that will allow it to forgo paying severance to the 20,000 workers it plans to let go. Union leaders said they will fight the decision, including the possibility of legal action. The nation's largest airline informed employees of its decision Saturday in an e-mail shortly after Congress approved a $15-billion federal bailout of the airline industry.
BUSINESS
February 25, 1987
The Dublin, Calif.-based supermarket chain said it reached an agreement on severance pay for about 3,000 former Gemco grocery employees in Southern California. Union and company officials said employees who worked in Gemco's food departments will have two options: up to four weeks of severance pay, depending on tenure with the company or a "preferential hiring arrangement" at Lucky supermarkets.
BUSINESS
March 18, 2008 | Elizabeth Douglass, Times Staff Writer
Edison International Chairman and Chief Executive John E. Bryson, who led the utility parent through the disastrous energy market meltdown in 2000-01, will retire this summer with a pension plan and stock options that at the end of 2007 were worth almost $65 million. Bryson, who hits the company's mandatory retirement age of 65 at the end of July, isn't receiving any retirement-related payments apart from a $16.8-million pension, which can be collected in a lump sum or over time, according to a securities document filed by the company late Friday.
BUSINESS
February 20, 2008 | From Bloomberg News
Yahoo Inc., owner of the most-visited U.S. website, adopted severance plans for employees that would pay as much as two years of salary to fend off a $44.6-billion bid from Microsoft Corp. Full-time employees would get at least four months of severance pay, and executive officers would get 24 months, Yahoo said Tuesday in a regulatory filing. Employees will be eligible for the payments if they depart within two years of a purchase.
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