Romanian market top managers can receive as much as 150,000 euros in the form of exit bonuses, if their employer decides to renounce their services.
"The value of an exit bonus can be six monthly wages, but can reach as high as 18 gross monthly wages," says Oana Botolan, a country manager with Consulteam, the domestic representative of Mercer human resources consultancy.
Large companies and particularly multinationals have exit packages for their top management. The respective packages are negotiated at the moment contracts are signed and depend on the size of the company, on the manager's position and strategic role, and lastly on the way he or she negotiates the exit.
"Less than ten managers on the Romanian market who are in this situation are cashing in such bonuses (i.e. 150,000 euros) each year. Most of the times, the sum is much smaller," says George Butunoiu, a headhunter.
In the case of managers who caused some problems at the company, the value of the exit bonus shrinks considerably and in some situations no exit bonus is granted.
"The exit bonus of a top manager reaches 100,000-150,000 euros per annum. Such bonuses are usually granted in situations where the company decides to operate a management change in the wake of an acquisition or a merger," says Daniela Necefor, a managing partner with Total Business Solutions, an executive search company.
Lawyer Iulian Patrascanu, a managing partner of Fine Law, an association including several law firms, says exit bonuses are set, in most cases, as a percentage of the company's turnover or profit. "I saw some exit bonuses that reached even 5% of the firm's net annual income" says Patrascanu, who specialises in management contract negotiations.
Just like a manager's entrance in a company, his or her exit is also managed in the form of negotiations. "For instance, the employer may let the executive keep the company car and give them less money," explains Consulteam's country manager.
For managers filling top positions, exit bonuses can reach the value of an annual wage, but in some situations bonuses can be much higher.
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