A severance package is a package of pay and benefits offered to employees when they leave an organization, not by choice. These packages are used to help pay salary and benefits to give the let go emplooyee time to retire or find a new job. If an investor saw that there was a $40 million dollar severance package out for someone that was let go from an organization it could strike a red flag for profits. This may also raise concern about how the organization is doing in terms of finances and what happened with that employee.