WW’s ousted CEO gets executive coaching services in exit package

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

The cost of exit packages varies by role, but the amount WW offered Sistani was “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 pay 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 filings.

Of the nearly 650 U.S. and Canadian companies surveyed in 2022 by management consulting firm Mercer, about 80% offered some type of outplacement service to employees. Of these companies, 93% offered leadership coaching to managers. In comparison, 78% offered coaching to core employees.

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

Outplacement packages for executives typically include a dedicated career coach to help the departing executive figure out their next move, as well as a resume coach, according to Karel van der Mandele, senior vice president of the outplacement firm Right Management. Top executives will often also receive a dedicated leadership coach and a battery of leadership assessments.

A 12-month outplacement package is common at the executive level, van der Mandele said, and can extend into the first 90 days of the executive’s next role at another company. The amount WW pays for Sistani’s coaching is typical, he added, although the cost of the services of some celebrity executive coaches can reach $100,000 over the course of a year.

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