First of all, it beggars belief that this whole thing could be the work of HR people or lawyers or something, operating under their own initiative. The only way I could believe that is if they deliberately set up a firewall to let people be bad cops while giving the C-suite plausible deniability. Which is no excuse.
But...you don't think they'd have heard about it from at least one departing employee, attempting to appeal the onerous terms of their separation to the highest authority in the company?