I put this same question to my brother, an executive in a small business recently. His answer was lawsuits. Some people take dismissals hard even when they are

I put this same question to my brother, an executive in a small business recently. His answer was lawsuits. Some people take dismissals hard even when they are done for the best of reasons. It just makes sense to offer a modest severance package that settles the matter up front rather than risking the time and expense of vindictive legal action.