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
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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
Howard Pianko, Shareholder, Epstein Becker & Green PC - "Structuring Golden Parachutes
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.