How to gracefully exit a senior executive in the UK

Create a transition plan

Don’t run the risk of the workforce and key customers/suppliers finding out through the grapevine that a senior executive has been sacked. You need to retain control at every stage of the process, and it all needs to be done in a way that does not undermine or compromise any ongoing negotiations around severance package discussions.

Make HR your buddy

The best thing you can do is review a termination conversation with a HR professional in advance. They will have more expertise and experience in this task than most managers. Rehearsing for difficult conversations and role playing with HR is one of the best ways to prepare for termination meetings.

Deliver the message immediately and transparently

Few dismissals happen over a single event, and most senior employees will have had some prior discussion about their shortcomings to the extent that dismissal should not come as a complete surprise. The termination meeting where the message is delivered should be taken step by step. Write down the most important things you plan to say and then stick to them.

Don’t shift the blame

Don’t get HR to do your dirty work. This can come across as cold, harsh, and uncaring – especially where there has been a professional relationship between the senior employee and their boss. Second, if you are the employee’s boss, don’t blame the decision on someone else, such as the board or a higher level manager. Most decisions that involve exiting senior executives are made with at least some collaboration.

Be generous

Go above and beyond the financial and non-financial sums the senior employee is entitled to under their service agreement/ contract of employment.

Talk to the team

After the termination, gather the team together and communicate the employee’s departure. Do not reveal the reasons behind the departure as that is confidential, and don’t badmouth the employee. Your aim should be to give a clear and decisive message and focus on the future.

Seek specialist legal advice

The dismissal of a senior executive is likely to involve a combination of employment, corporate and tax issues, which can all influence how the situation should be handled, particularly if you are negotiating a severance package and disruption to the business is to be minimised. When considering contractual documents, don’t limit yourself to the service agreement or employment contract. There could be corporate entitlements such as shares, share options, and stand-alone bonus schemes which could turn on “good leaver” and “bad leaver” provisions. Often the articles of association will set out who has the authority to dismiss a senior executive. If you get this wrong, the dismissal could be null and void. Taking legal advice from a specialist lawyer who deals with senior executive terminations will allow you to consider the legal and financial risks as part of your overall planning and management of the exit discussions.

Conclusion

The decision to terminate an employee is never easy. Firing someone you’ve worked with for years, especially someone you know and respect, is often excruciating. Even the most experienced managers lose sleep over it. It’s almost impossible to take the emotion out of what is a very personal decision, even when it’s a decision that makes rational economic sense on paper.

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Photo: Jacob Lund - stock.adobe.com