But why does this happen, how often is it likely to happen in a career, what should you ask for if it happens, what is the experience like and what are the lessons?
Inevitably when there is confusion people get caught in the crossfire and this leads to early exits for many of us.
To normalise the issue I carried out an anonymous survey of 73 marketing leaders at a Marketing Director, VP or C-suite level through Q4 2023.
The average number of SAs across all tenures is 2 and the highest at 6
In the first 20 years of a career, 8/10 respondents had at least 1 SA
Over the next 10 years, 2/3rd had on average a further 1.7 SAs
Those with over 30 years in marketing had on average 3 SAs
Across the whole study, less than 1/10 have not had a SA
The median SA package expectation for a 2 year tenure was 1 year’s salary
SA came as a surprise to 9/10 and whilst most left on good terms most felt their wellbeing was affected by the process
8/10 agreed the CEO’s departure or the CEO relationship was the key reason for their exit
8/10 agreed they’d want to understand the CEOs leaderships style and C-suite attitude to marketing before they started their next role
The range of settlement agreements varied significantly. There were five tiers:
Tier 1: Nearly everyone had a core lump sum severance package
Tier 2: 2/3 received payment for unused holiday, annual bonus and LTIPs
Tier 3: Approx 1/2 retained their medical insurance and had outplacement costs
Tier 4: 1/3 kept their phone and any other desktop equipment
Tier 5: 1/8 negotiated retraining costs, retaining a personal coach or something else
The results are outlined below and fuller details with details by tenure are at: https://blog.sideminds.com/the-ultimate-guide-to-marketing-settlement-agreements-and-early-exits
My five observations and recommendations for all senior marketers based on the results:
Don’t be surprised if an early exit happens. Chances are it will happen every 10 years and it could come out of the blue.
Don’t worry if it happens. Most senior marketers have been through this experience, so if it’s happening to you, connect with others for support.
It is very unlikely to be due to your performance. It’s more about the CEO, so keep building this relationship as much as you can.
The SA process can be quite rigid, but you’ve a 50/50 chance you will be able to influence it and especially get softer financial benefits.
The exit experience is a step into the unknown. There are people who can help (me included), and a good SA gives you time to reset and return better.
On the last point, I’ve been through this a few times and am happy to help. Working with a few ‘inbetweeners’ this year has created a step by step process to make the uncomfortable more comfortable (everything from SAs to CVs, head-hunters to LinkedIn, communities to personal coaching). If you want to find out more please get in touch.
Hopefully this information has helped normalise exits/SAs and encourage us all to talk about it more. One final thought, but given this is likely to happen to everyone at some point, could you help an ‘inbetweener’ with a consulting opportunity? It can take a while to get the next role, which can be unsettling mentally and financially. We all know the TMA Fellows are awesome, so if you have a project, why not consider recycling it back into the community and hopefully we can create a support circle of reciprocity. I will happily act as a connection point.
Q1: Reason for leaving
What led you to getting a settlement agreement or having an exit earlier than you might have originally planned? Tick all that apply.
Cell | Responses | |||
The CEO changed (or other senior leader changed) | 52.38% | |||
There was a business re-organisation | 47.62% | |||
My working relationship with the CEO was challenging | 33.33% | |||
I disagreed with the companies direction/plans | 28.57% | |||
I found I didn't fit with the companies culture | 28.57% | |||
The C-suite was re-organised/reporting lines changed | 23.81% | |||
I found my values were being challenged | 23.81% | |||
I wanted a change / It was a good mutual time for a change | 23.81% | |||
I had had enough / needed a break / exhaustion | 19.05% | |||
The business was acquired, merger or folded | 14.29% | |||
The business was not hitting its goals or needed to reduce costs | 14.29% | |||
My working relationship with the C-suite was challenging | 14.29% | |||
I was seen to be under performing as the marketing leader (perceived or other) | 14.29% | |||
The business strategy changed direction | 9.52% | |||
The skills needed in the marketing leadership role changed | 4.76% | |||
There were wider personal issues I needed to manage | 4.76% | |||
There was an unspecific desire for change in the business | 4.76% | |||
There was no clear reason given | 4.76% | |||
The marketing team was under performing | 0.00% | |||
Other | 0.00% | |||
Q2: Settlement agreements across the full sample
Whilst you were employed, how many Settlement Agreements did your experience? This refers to an occasion you left the business early and your employment contract was curtailed.
Q3: Influence over the process
How much influence did you have on the exit process? Many companies seem to have set formula to calculate the agreement, whilst others are more bespoke to the individual. What is your experience generally?
Q4: Settlement package experience
What have you been able to negotiate into your Settlement Agreements? We are looking to understand what has been possible. Tick all that apply.
Cell | Responses | |||
Lump sum severance payment | 88.06% | |||
Unused holiday payment | 68.66% | |||
Annual bonus payment | 62.69% | |||
LTIP or shares protected | 64.18% | |||
Outplacement costs covered | 58.21% | |||
Medical insurance retained for a period of time | 43.28% | |||
Able to keep company mobile phone | 32.84% | |||
Able to keep company iPad or desktop/laptop | 29.85% | |||
Company car retained for a period of time | 14.93% | |||
Lump sum provided to carry out some retraining | 13.43% | |||
Able to keep equipment provided for working from home | 13.43% | |||
Costs for an existing or new personal coach covered | 11.94% | |||
Other | 10.45% | |||
Q5: Settlement expectation
Given the average tenure for marketing leaders is just over two years, how much would you think they would receive as a total Settlement Agreement package including holiday pay etc?
Q6: The exit experience
Can you tell us how the overall process of going through a Settlement Agreement and exit felt. If you have had multiple experiences, consider them collectively. Tick all that apply.
Cell | Responses | |||
I feel my overall wellbeing was affected by the experience | 90.9% | |||
It was not well planned and a surprise | 89.4% | |||
I did not feel well supported through the process | 89.4% | |||
I was pressured through the process | 87.9% | |||
I felt the process was unfair | 86.4% | |||
I did not feel the change happened for the right reasons | 81.8% | |||
I hold grudges with my boss or employer | 77.3% | |||
I felt I did not have some control over the process | 69.7% | |||
It was not something we had discussed and mutually agreed | 65.2% | |||
It was not a dignified process | 65.2% | |||
I did not leave on good terms with my employer | 42.4% | |||
Q7: Personal learning
What have you learnt from the experience and would do differently next time? Tick all that apply.
Cell | Responses | |||
Understand the C-suite's attitude to marketing better (ie short vs long term) | 45.45% | |||
Understand the CEO's leadership style, goals and aspirations better | 36.36% | |||
Understand any wider organisational changes being considered | 27.27% | |||
Understand more about how they expect me to work | 18.18% | |||
Understand C-suite team's ways of working, goals and aspirations better | 13.64% | |||
Understand the company’s culture and values better | 13.64% | |||
Understand any wider shareholder or investor pressure | 13.64% | |||
Understand the financial resources available for marketing better | 9.09% | |||
Understand the marketing team's capability better | 9.09% | |||
Understand the wider environment and its impact on the role better | 9.09% | |||
Understand the company’s strategies and goals better | 4.55% | |||
Understand the company’s finances better | 4.55% | |||
Other | 31.82% | |||