golden parachute


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Related to golden parachute: greenmail, poison pill, Silver Parachute

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 ?
Thus, the longer the board tenure, the greater the likelihood of a golden parachute.
The NCUA Board would have final authority over whether a golden parachute is allowed and the criteria it uses will include what degree the employee had managerial or fiduciary responsibility; the length of time the employee was affiliated with the credit union and does the payment represent a reasonable payment; and any other factors that could be considered.
And now we are going to reward incompetence with a lucrative contract after he was given a golden parachute of $500,000.
While it can offer much more, the typical golden parachute provides the recipient with a minimum of three times his or her annual salary, three years' worth of bonus, and three years' continuation of principal benefits, says Roger Siske, a partner at Sonnenschein Nath & Rosenthal in Chicago and chairman of its national employee benefits and executive compensation practice.
com/reports/c32570) has announced the addition of Executive Reports: Structuring Golden Parachute Agreements - The Over-Arching Issues You Need To Know to their offering
There's no question that the commission's decision to grant Larry Keller a golden parachute of up to $500,000 is, on its face, patently offensive to taxpayers,'' Villaraigosa said.
Cumberland advises corporate clients on executive compensation issues related to stock options, restricted stock, non-qualified retirement plans, deferred compensation, global compensation strategies, golden parachute rules and the one million deduction limitation.
In many cases, the sole justification for these boards and commissions seems to be to allow politicians to reward supporters and to provide a golden parachute for defeated or termed-out cronies, who otherwise would be looking for a job.
Golden parachute payments made to corporate executives, which are contingent on a change in ownership or control, are limited under Sec.
One month after these contracts were agreed to--and following enactment of the golden parachute rules (IRC sections 280G and 4999)--Jewel and the executives changed the agreements, reducing the amount of severance pay so there would be no "excess parachute payments" under the newly enacted rules.
Auditors examining the businesses will focus on eight primary areas: nonqualified deferred compensation, stock-based compensation, the $1 million cap on compensation paid to public company officers, golden parachute arrangements, split-dollar life insurance, fringe benefits and the use of two listed transactions (family limited partnerships and offshore employee leasing).
The golden parachute rules apply only if payments are made contingent on a change in a corporation's ownership, in effective control of the corporation or in the ownership of a substantial portion of the corporation's assets.
The golden parachute deal for new chief Justin King, pictured, comes on top of base salary of pounds 675,000 and is to "compensate" him for missing out on bonuses he would have got if he'd stayed in his old job at Marks & Spencer.
An arbitrator in February ruled that the hospital had no cause to fire Abraham, but said a controversial golden parachute consulting contract was invalid.
Some items that require a Form 11199-MISC include: (1) real estate, equipment or pasture rentals; (2) royalties to authors; (3) prizes and awards not paid as part of services rendered; and (4) compensation (such as fees, commissions and awards) and golden parachute payments paid to nonemployees for services.