What is a Golden Parachute?
Golden Parachute is defined as a financial association or compensation package that is usually presented to pinnacle executives, particularly CEOs and other excessive-rating executives, mainly on the occurrence of a merger and acquisition. The term “Golden Parachute” is derived from the idea of giving some monetary assurance to higher-level employees in case their position gets terminated in the company. Various monetary benefit is offered to employees which can include stock options, severance pay, grants, etc.
Table of Content
- Working of Golden Parachute
- Example of Golden Parachute
- Rules of Golden Parachute
- Difference between Golden Handcuffs and Golden Parachutes
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