The average severance package across industries was 19.3 weeks in 2024, up from 15.6 weeks the previous year, according to a Dec. 30 report from executive coaching firm Challenger, Gray & Christmas.
More than 90 hospitals and health systems have announced job cuts in 2025, including reductions in C-suite roles tied to closures, workforce reductions and restructurings.
The “2025 Severance & Salary Benchmarking Report” is based on data from thousands of severance packages offered in 2024 across industries and job levels. It includes survey responses from more than 13,000 job seekers from 840 companies. Just 3.21% of respondents were from outside the U.S., and 6.16% worked in healthcare.
Here are four things to know from the report:
1. In healthcare, the average severance was 21.08 weeks in 2024, with a maximum of 91 weeks.
2. Companies used various methods to calculate severance, including fixed amounts regardless of tenure or tenure-based pay.
3. C-suite leaders typically received severance between 30 and 50 weeks, while executive-level leaders received 20 to 40 weeks. Individual contributors often received fewer than 10 weeks.
4. The gender total pay gap across industries was 23%, narrowing when adjusted for level and base pay. On average, women received 4.6% less severance than their male counterparts.
