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In 1990, the Supreme Court ruled that Boeing was within its rights to make lump sum severance payments to several employees when they quit Boeing to take senior military posts.
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When workers are laid off, they often receive lump-sum severance payments.
Firms typically provide the main pensions of staff they jettison, as well as lump-sum severance packages.
But Raj Chetty of Harvard has a subtler answer.He points out that workers who receive generous lump-sum severance payments also take longer to find a new job.
Before 1970, Taiwan offered its retiring soldiers only a lump-sum severance of about $10 for nonofficers, with shoes and a blanket tossed in.
In August, the county offered a lump-sum severance package worth between $6,000 and $8,500, depending on length of service.
In addition to a lump-sum severance and options vesting, Mr. Ernst will receive health care coverage at the company's expense until December 2010, H&R Block said in a regulatory filing.
Compensation schemes may include retraining and lump-sum severances to ease the transition of workers into the private sector.
Those who did not take their severance in a lump sum could be hurt by the bankruptcy.
The company will pay Mr. Freston half his severance in a lump sum in March, with the rest over three years.
If he gets terminated in the event that Zynga has a "change in control" or gets acquired, both the big stock grants get fully accelerated with the cash severance being paid in a lump sum.
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