golden parachute

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golden parachute,

a contract given to top executives of a corporation to provide benefits in case of job loss due to a takeover by another firm or a merger. The unusually generous benefits may include substantial severance pay, a one-time bonus payment when employment ends, or stock options.
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The Conference Board said that is the highest number ever seen for golden parachutes.
Among categories, the use of golden parachutes varied but was least likely at organizations of less than $1 million operating budget.
Exceptions can be made if a credit union gets permission from its state or federal regulator or it uses a golden parachute to hire new executives to bring it back to sound financial health.
To examine the impact of golden parachutes, two colleagues and I analyzed a sample of 851 acquisition bids from 1999-2007, giving particular emphasis to variables designed to signify the potential for moral hazard.
Under the proposed new commitments, the DPJ aims to eradicate dubious ties between the government and the private sector by totally banning senior bureaucrats from receiving golden parachutes that land them jobs at government affiliates and other entities.
Hevener was described as the only person on the face of the earth who could turn golden parachutes into an interesting topic.
In their view it will take at least a generation or two to restore the trust that has been blown to smithereens by leaders absorbed in their own obscene bonuses and golden parachutes rather than the well-being of the people who make it all work.
But it is an abuse when there is reward for failure, like the golden parachutes which ensure that even if people are kicked out for incompetence they still take a very large amount of money.
Using an agency theory framework and data on 89 Fortune 500 firms, we assess whether the granting of golden parachutes to chief executive officers is the result of an economically rational process or determined by the social influence of the CEO.
The study looked at the results of newly required shareholder advisory votes called Say on Golden Parachutes (SOGP), which relate to management payouts that would be triggered by a corporate change-in-control.
The NCUA's proposal to limit golden parachutes and indemnification payments is overbroad and would place unnecessary restrictions on credit union boards, according to comment letters filed by CUNA and NAFCU.
Increasingly," Bowie adds, "companies are beginning to implement shareholder proposals, especially when they address today's hot issues, such as de-classifying (electing them annually) staggered boards; eliminating 'poison pills' or agreeing to put them to a shareholder vote; expensing stock options and allowing shareholders to vote on golden parachutes that exceed three times an executive's compensation.