A golden parachute is an agreement between a company and a high-ranking employee (usually an executive), specifying significant benefits that the employee shall be granted in the case of a merger or takeover and termination of that employee. These benefits may include severance packages, stock options, cash bonuses, and more. Often times the golden parachute is used by companies as an additional measure to prevent a merger or takeover.
What is a Golden Parachute ?
About the Author: Gal Barash
Third year Law & Government student at the IDC Herzliya. Dreams of becoming a lawyer in the entrepreneurial world and enjoys surfing, playing the guitar and travelling during his free time.