Professor David Yermack explains why large severance packages are common in the entertainment industry
— November 21, 2016
Excerpt from The Hollywood Reporter -- "'Severance is an insurance policy. In the entertainment business, you are putting a product out there that requires imagination. It's inherently risky to be in a creative business,' says compensation expert David Yermack, a professor at NYU's Stern School of Business. 'And you want to provide a safe landing for those you are firing without cause. It's a signal to the next group of managers that you will take care of them.'"