Golden Parachute
Content
Definition
Golden Parachute is a large financial compensation package guaranteed to a company executive if they are terminated or the company is acquired, serving as risk mitigation for executives
Usage and Context
Golden parachutes are common in big deals or mergers. They make sure top executives are okay if they lose their job during these changes.
Frequently asked questions
- What is the main purpose of a golden parachute? The main goal of a golden parachute is to protect top executives. It gives them money if they lose their job because of a takeover or merger.
- What is the golden parachute in HR? In HR, a golden parachute refers to a special deal for executives. It offers them a big payment if they`re fired or if the company is sold.
- How do you write a golden parachute agreement? To write a golden parachute agreement, you need to set clear terms. These include how much money the executive gets and under what conditions. It`s often part of their initial job contract.
Benefits
Golden parachutes make executives feel safer. They know they won`t be left empty-handed if the company changes hands. It also helps attract top talent to the company.
Conclusion
Golden parachutes offer a safety net to high-level executives. They ensure these leaders are compensated if they lose their jobs in big company changes. This setup helps attract and keep top executives in a company.
