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The Incentives Lab
HBT-INC-0250 · Dimension INC · Incentives

Severance Asymmetry

Executives leave well; employees leave thin.

Corporate Perverse Pattern·Perverse Incentive·Grade C·draft· enriching…

Scientific Definition

Executives leave well; employees leave thin.

Plain-English Definition

Executives leave well; employees leave thin.

Feynman Explanation

Failure pays differently depending on your title.

Core Principle

Executives leave well; employees leave thin.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Executives leave well; employees leave thin.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Cultural trust erosion.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Failure pays differently depending on your title.

Examples

Everyday
  • Disclosed exec severance vs. typical layoff package.
Modern (Organizational)
  • Cultural trust erosion.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Severance structures proportional to compensation already received.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
C (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
4 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Cultural trust erosion.
Amplifying Incentives
Cultural trust erosion.
Org Failure Modes
Cultural trust erosion.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Severance structures proportional to compensation already received.
Diagnostic Questions
  • Severance structures proportional to compensation already received.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Severance structures proportional to compensation already received.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-INC-0250 · INC
Severance Asymmetry
SAAEAcquisition Earn-OutsAMAcquisition-Only Mar…ACAggressive Cost-Cutt…BSBonus Structure Game…BHBoomerang Hire PremiumCPCEO Pay-for-Stock-Pr…EMEmpire-Building M&AFSForecast SandbaggingGAGrowth at All CostsHAHeadcount as Status

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.