It’s a reference to monetary compensation often given to high level executives in large companies for when they leave for some reasons. Usually if the leaving is on a short short time frame as opposed to finding a new position they leave for voluntarily, although I don’t know that much about how they actually work.
The funny thing is that since it’s an actual word the spell checker might not be of any use to see that it might not be the word you’re actually wanting to use. And with the amount of people using “payed” instead of “paid” the dictionaries will probably include “payed” as an alternative way to conjugate “to pay” in the currency sense.