golden parachute

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Related to Golden parachutes: greenmail, poison pills

golden parachute

A large severance package given to an executive who is forced to leave a company due to a corporate merger or takeover. Daniel refused to take the position unless the company added a golden parachute clause to his contract.
See also: golden, parachute

golden parachute

n. a special kind of severance pay for persons who may be forced to leave a job. (see also golden handcuffs.) If all the golden parachutes were used at the same time, it would bankrupt the company.
See also: golden, parachute
References in periodicals archive ?
The primary argument for granting golden parachutes is predicated on the notion that, under some circumstances, top executives may resist takeover attempts in order to protect their jobs, even though such attempts may be in the shareholders' interest.
The Say on Golden Parachute White Paper is available at http://pearlmeyer.
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.
For an executive, a golden parachute is a very good severance package.
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.
I think compensation committees should adopt a convention that puts a ceiling on pay packages, somewhat like what has been done with golden parachutes.
NCUA Attorney Pamela Yu said there are exemptions to the golden parachute rules to allow for previously agreed to deferred compensation plans and legitimate "nondiscriminatory" severance pay plans.
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.
The two most popular tax approaches for golden parachutes are
Howard Pianko, Shareholder, Epstein Becker & Green PC - "Structuring Golden Parachutes for Executives"
Other senior executives would get smaller golden parachutes of three years' salary, two years of bonus pay and stock, according to the proxy statement.
Wally questioned whether he should mention golden parachutes if no one else did.
These golden parachutes aren't unreasonable, said Keith Davis, director of compensation at SNL Securities, a Virginia-based research firm specializing in the financial services industry.
Corporate jets and golden parachutes, stock options and million dollar pay days are a thing of the past in corporate America.
Seventy four percent of the 2003 resolutions were tied to corporate governance issues, which include matters such as executive compensation, option shares and golden parachutes, while twenty six percent were related to social and environmental issues.