Golden Parachute
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
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.
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.
Key Takeaway
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.