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COMPANIES OFFERED LESS GENEROUS SEVERANCE PACKAGES TO TERMINATED EXECUTIVES IN 1993, NEW COOPERS & LYBRAND SURVEY SHOWS

 NEW YORK, Dec. 30 /PRNewswire/ -- Companies were less generous in 1993 than they have been in the past in supplying severance benefits to terminated executives according to a recently released survey by Coopers & Lybrand.
 The survey, "Severance Pay Update for 1993," shows that employers have made significant cutbacks in such post-termination benefits for executives as use of office or desk space, referrals within and outside the company, and cost-free services like resume reproduction and outplacement counseling.
 The percentage of employers who offered post-termination use of office or desk space fell from over 25 percent in 1991 to just 15 percent in 1993. Employers who provided outplacement services for the terminated executives dropped from 60 percent in 1991 to 56 percent in 1993. Allowing use of the company's facilities for resume reproduction was down 13 percent -- from 43 percent in 1991 to 30 percent in 1993, while referrals within the company fell from 42 percent in 1991 to 24 percent in 1993. The policy of referring terminated executives to other companies also experienced a drop of from 20 percent in 1991 to 16 percent in 1993.
 Janet Fuersich, national director of compensation consulting for Coopers & Lybrand, said that severance benefits packages for executives used to be envisioned as an infrequent one-time cost, "Now," she said, "employers are getting used to downsizing, and providing severance benefits is seen as an on-going cost. Therefore employers are inclined to be less generous than in the past."
 A second new trend also emerged from the study showing that, in spite of cutbacks in supplementary termination benefits, a higher proportion of employers are continuing to provide company-paid group insurance benefits after employees have left the workplace. In 1991, only 41 percent of the respondents reported a continuation of benefits. In 1993, the figure rose to 62 percent.
 The nationwide survey covered a broad range of business interests, including manufacturing, banking, insurance, trade, education, healthcare and research. Results were based on replies from 90 organizations, ranging in size from under $10 million to over $10 billion.
 Copies of "Severance Pay Update for 1993" are available for $175 from Coopers & Lybrand's Human Resource Advisory Group, 1301 Avenue of the Americas, Room 9-56L, New York, NY 10019-6013 (212-259-2447).
 One of the world's leading professional services firms, Coopers & Lybrand provides services for enterprises in a wide range of industries. Its employee benefits practice ranks among the top ten in the world. The firm offers its clients the expertise of more than 16,000 professionals and staff in offices located in some 100 U.S. cities and more than 66,000 people in 120 countries worldwide.
 -0- 12/30/93
 /CONTACT: Doris Brown of Coopers & Lybrand, 212-536-2013/


CO: Coopers & Lybrand ST: New York IN: SU: ECO

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Publication:PR Newswire
Date:Dec 30, 1993
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