an agreement to pay a large sum of money to senior employees if they lose their jobs, for example after a takeover.
A payment or compensation package negotiated in advance and given to a top executive who loses his or her job as a result of a merger or acquisition. Golden parachutes usually include a severance package, bonuses, the continuation of benefits, vested stock options, and other perks. See also change of control clause, fixed compensation clause, fixed-term, fixed-sum clause, golden handcuffs, and rolling contract clause.
A stipulation in an executive compensation package which grants the executive upon departure or termination a lump sum payment or an annuity.
A provision to protect existing officers and directors of a company from removal in the event of a takeover. Often a large sum of money is involved upon removal.
A form of shark repellent: a strategic move by a takeover target company to make its stock less attractive to a potential acquirer. The golden parachute strategy is to have contracts with top executives that make it prohibitively expensive to get rid of existing managers.
Amounts payable to key executives in case of a takeover, merger, or other change in control of the corporation.
giving top executives lucrative benefits that must be paid by the acquirer if they are discharged after a takeover
an agreement which promises an executive large amounts of money in the event that his/her job is eliminated – (ÑтрахуваÐ1/2Ð1/2Ñ)
Payments made to senior business executives in excess of their usual compensation (e.g.,stock options, bonuses) when the business is sold and they are terminated from employment.
Contractual payments sometimes made to current management in the event of a takeover of the company.
Compensation paid to top-level management by a target firm if a takeover occurs.
A severance agreement that protects the executive financially in the event of a sudden dismissal.
Payments made to business executives in excess of their usual compensation (e.g.,stock options, bonuses) in the event the business is sold and the executives are terminated from employment.
An agreement entered into by a corporation with its top executives to make substantial payments to the executives in the event of a change in corporate control. Such payments are treated as compensation.
A sum payable, usually to a senior executive if he/she is forced to leave his/her company, in the event, for example, of a takeover by another firm.
Employment contract of upper management that provides a large payout upon the occurrence of certain control transactions, such as a certain percentage share purchase by an outside entity or when there is a tender offer for a certain percentage of a company's shares. Discussed in more detail at The Executive Employment Agreement.
Lucrative contract that is given to top executives in the event that the company is taken over by another corporation and results in job loss. The contract usually includes a large amount of severance pay, stock options, and a bonus. Golden Parachutes are usually a part of an anti-takeover strategy.
Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, bonuses, severance pay, etc.
A benefits package secured by top executives if a layoff occurs due to a corporate buyout or takeover. The benefits may include out-placement, six months to two years of severance pay, stock options, or a substantial bonus.
A golden parachute is a set of lucrative benefits that a company is contractually obligated to give to senior executives if the company is taken over by another firm and the change in control leads to a loss of their jobs. The golden parachute can include substantial severance pay, stock options or a bonus.
A severance benefit that provides protection and security to executives in the event that they lose their jobs or that their firms are acquired by other firms.
A golden parachute is a clause (or several) in an executive's employment contract specifying that they will receive certain large benefits if their employment is terminated. Sometimes it is only in the case that the company is acquired and the executive's employment is terminated as a result, but not always. These benefits can be severance pay, cash bonuses, stock options or a combination of the items.