WW’s ousted CEO will receive executive coaching services in an exit package

Executive coaching and outplacement services are becoming increasingly common in exit packages, said Andrew Challenger, senior vice president of outplacement firm Challenger, Gray & Christmas Inc.

Exit packages vary in cost depending on the role, but the amount WW offered to Sistani is “well within the range of typical packages,” Challenger said in an email.

Sistani’s exit package also covers $50,000 of her legal fees and a month’s salary at her current salary as she hands over the reins to board member and interim CEO Tara Comonte. Sistani’s total compensation in 2023 was $8.9 million, according to company documents.

Of the nearly 650 U.S. and Canadian companies surveyed by management consulting firm Mercer in 2022, about 80% offered some form of outplacement services to employees. Of these companies, 93% offered coaching for senior executives. In comparison, 78% offered coaching to regular employees.

When executives are hired, their employment contracts often include provisions for certain separation circumstances, such as if they are terminated without cause. Some companies, such as Shake Shack Inc. and Paramount Global, do not specify the potential costs of such offers. Others, such as Hertz Global Holdings Inc., Advance Auto Parts Inc. and toymaker Hasbro Inc., have capped the value of outplacement services at $25,000, according to company filings.

Executive outplacement packages typically include a dedicated career coach, who helps the outgoing executive determine their next step, as well as a resume coach, according to Karel van der Mandele, senior vice president of outplacement firm Right Management. Top executives are also often provided with a dedicated leadership coach and a series of leadership assessments.

A 12-month outplacement package is common at the C-suite level, Van der Mandele says, and can extend to the first 90 days of the executive’s next position at another company. The amount WW pays for Sistani’s coaching is typical, he added, although the cost of some celebrity executive coaches’ services can be as much as $100,000 over the course of a year.

WW, also known as WeightWatchers, has struggled to retain customers amid the rapid rise of weight-loss shots like Ozempic. The company announced job cuts in August as it looked for ways to reduce costs.