True Cost of Leaving

The true cost of leaving is the full financial cost an executive incurs by leaving a role on a specific date. It has four components: the value of unvested LTIP that would be forfeited, the tax consequences that can follow if a deferred compensation balance distributes at departure, the cost of replacing non-financial compensation a new employer may not provide, and any sign-on bonus or retention bonus that would have to be repaid under a clawback provision. It is a Payprweight framing term, built to bring those components into a single number.