How much severance should I get?

Counteroffer · Answers · severance Source: https://trycounteroffer.com/answers/how-much-severance-should-i-get

Short answer: Most US employees should expect about 2 weeks of base salary per year of service, with a floor of 4 weeks for ICs, 8 weeks for managers, 12 weeks for directors, 6 months for VPs, and 12+ months for executives. The cash amount is only part of the package. Equity acceleration, healthcare bridge, and extended option exercise windows often add equivalent or greater value, especially for senior leaders.

Severance calculator by role and tenure

The standard formula in the US private sector: base weekly salary × (2 weeks × years of service), with a floor that scales with role level.

Role	Floor	Per-year-of-service	Cap (most common)
Individual contributor	4 weeks	2 weeks/year	26 weeks
Manager	8 weeks	2 weeks/year	26 weeks
Senior Manager	10 weeks	2 weeks/year	30 weeks
Director	12 weeks	2-3 weeks/year	40 weeks
Senior Director	16 weeks	3 weeks/year	52 weeks
VP	26 weeks (6 mo)	n/a (fixed)	52 weeks
SVP	39 weeks (9 mo)	n/a	78 weeks
EVP / C-Suite	52 weeks (12 mo)	n/a	104 weeks

Worked example. A Senior Engineer with 4 years of tenure earning $200K base would expect: $200,000 / 52 × 8 weeks = $30,769 in cash severance. If HR offers $15,000, they're 100% below market.

Worked example, senior leader. A VP with 6 years at the same company earning $300K base would expect: 6 months × ($300,000 / 12) = $150,000 in cash severance, plus target bonus pro-rated, plus 9 months of healthcare, plus 9-12 months of equity acceleration.

The full picture: cash plus benefits

For most professionals, the cash severance is only 40-60% of the total package value when you include:

Pro-rated target bonus through last day worked (can be 10-30% of base)
Healthcare bridge: 3-12 months of employer-paid COBRA, worth $500-$2,500/month
Accelerated equity vesting: often the largest line item for senior leaders, especially at venture-backed companies
Extended option exercise window: can preserve six-figure option value by avoiding the 90-day ISO→NSO conversion deadline
Outplacement services: usually $2K-$10K of value
Reference letter and designated reference contact (intangible but valuable)

Senior leaders should expect the package to be structured around equity treatment, not just cash. C-suite separations often involve $500K-$5M in equity value across acceleration, extended exercise, and vesting through scheduled events.

What changes by company stage

The benchmarks above are typical. They vary by company stage:

Early-stage startup (pre-Series B): cash severance often at the floor or below; equity acceleration is the negotiable lever. Companies cite cash constraints, but equity is "free" to issue.
Growth-stage (Series B-D): cash benchmarks apply; equity acceleration is standard for senior leaders. Healthcare bridge of 3-6 months typical.
Late-stage private / pre-IPO: cash benchmarks apply more strictly; equity acceleration with double-trigger acceleration on Change of Control is standard for VP+; healthcare bridge of 6-12 months.
Public companies: cash benchmarks apply; equity treatment follows the equity plan documents (which may not match what HR initially offers); D&O insurance tail coverage for officers; 280G excise tax planning for C-suite in M&A scenarios.

For executives in M&A-related separations, the package can include 280G gross-ups, retention bonus continuation, and extended consulting periods. These are highly negotiable and rarely included in the initial offer.

Examples

Profile	Tenure	Initial offer	Market	Counter
IC engineer, $200K base, growth-stage SaaS	4 yrs	2 weeks ($7,700)	8 weeks ($30,769)	"Standard for 4-year tenure at this level is 8 weeks. Request 8 weeks plus pro-rated bonus."
Director PM, $230K base, public Fortune 500	7 yrs	8 weeks ($35,400)	14-21 weeks ($61,900-$92,800)	"Per peer practice at this level, request 14 weeks plus 6 months COBRA and pro-rated bonus."
VP Eng, $350K base + $100K target bonus, Series D	5 yrs	12 weeks base only ($80,769)	6-9 months base + bonus, 9 mo COBRA, 9 mo equity acceleration	"Standard for VP at this stage is 6 months of base ($175K) plus target bonus ($100K) plus 9 months acceleration. Request the full package."
C-suite, $500K base + $250K target bonus, pre-IPO	3 yrs	26 weeks ($250K)	12-18 months base + bonus, full vesting acceleration, 12 mo COBRA, D&O tail	"Standard for C-suite at this stage is 12-18 months of base ($500-750K) plus bonus and full vesting. Request the executive package."

These examples are typical, not guaranteed. Specific dollar amounts depend on your contract, company practice, and the structure of the layoff.

State-specific minimums

A few states have specific severance-related statutes worth knowing:

California: PTO must be paid out at termination at base salary rate (Cal. Lab. Code § 227.3). Severance itself is not statutorily required.
New Jersey: WARN Act (NJ-WARN) requires 1 week of severance per year of service for mass layoffs at large employers (50+ affected).
Maine: Severance required for plant closings (1 week per year of service, after 3 years).
Massachusetts: PTO payout required at termination (G.L. c. 149 § 148).
Tennessee: No state PTO payout requirement; employer policy controls.

These statutory minimums are floors, not ceilings. Most professionals should expect significantly more than the legal minimum.

What to do next

The honest answer to "how much should I get" is "what's the gap between what HR offered and market for your role." If that gap is more than $5,000-$10,000, a $199 review will pay for itself many times over.

If you want a delivered analysis of your specific package against market benchmarks, with the exact counter language to send back, we'll have it in your inbox within 24 hours. See Severance Review.

Get your contract reviewed

If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/severance.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice.