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.
CUNA Senior Vice President and Deputy General Counsel Mary Mitchell Dunn wrote that the board should permit credit unions to make golden parachute payments to former executives of insolvent or CAMEL 4 or 5 credit unions if the executive "was not involved in causing the loss.
The Allied board only exacerbated shareholder concerns regarding the terms, process and motives involved in the proposed merger by simultaneously approving the merger agreement and amending employment agreements for top executives in ways that appear to have materially increased golden parachute payouts for these executives.
While a few of the law firm's clients have been audited in the past on deferred compensation and golden parachutes, there has been "very little history" of the IRS actively auditing these areas, Fuller adds, describing the situation as something akin to "benign neglect.
Today, golden parachutes can encompass a wide variety of benefits, including not just extended salaries and cash payouts but also early vesting of stock options, bonuses, pensions and other benefits such as health and life insurance policies, says Marianne Heard, CPA, a manager at American Express Tax and Business Services.
SRI funds are also more consistent in their support of popular 'plain vanilla' governance issues we examined (poison pills, expensing stock options, golden parachutes, and declassifying the board) -- totaling 90 percent support for these four issues, opposed to 72 percent support by 'conventional' funds.