Severance 1x2
In 2001, CIBC entered into change of control contracts with certain senior officers of CIBC, including each of the NEOs and the Vice-Chair, CIBC WorldMarkets. Each contract is in place for as long as the NEO or Mr. Kassie holds his respective position. The contracts provide for severance payments to be made to the NEO and toMr. Kassie where a change of control, as defined in the contract, occurs and, within a certain period after the change of control occurs, the executive is terminated without cause or resignsfor reasons specified under the contract("Termination"). The amount of severance payment to a NEO or Mr. Kassie, as the case may be, is equal to two times annual salary and bonus. Severance is payable when Termination occurs within36 months after a change of control for Messrs. Hunkin, Fox, McCaughey and Kassie and 30 months for Messrs. Lalonde and Woeller. With the exception of these periods, theterms of the contracts are identical. In addition, the contracts provide for a cash settlement in lieu of continued pension and benefits coverage. Upon a change of control, all deferred equityincentive compensation will become vested and exercisable, including employee stock option and restricted share awards.
Severance 1x2
In these circumstances, a party may be relieved from further contractual obligations. In terms of employment contracts, this means that the employment relationship can be severed without having to provide notice or severance pay.
The only exception to this occurs in the instance of employee injury or illness. Under these circumstances, the frustration of contracts in Ontario requires the employer to pay out a minimum statutory termination pay and/or severance pay.
Hoekstra v Rehability Occupational Therapy Inc. was an interesting case. The plaintiff was an employee that had been off work for four consecutive years due to a disability. The employee wanted his contract to be frustrated due to disability and sought his statutory entitlement to termination and severance pay under the Employment Standards Act.
A CLO oversees and supervises the work of the in-house legal team to help the company tackle various legal issues. A CLO oversees the matters such as terminations and severance packages, human rights, and disability accommodations, and drafting and reviewing employment contracts. 041b061a72