These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover.(Golden Parachutes)

Question

Quizplus · Accepted Answer

Golden Parachutes are clauses in employment agreements that provide pay and benefits to executives if their employment is terminated due to a change in ownership or corporate takeover. These clauses often include substantial severance packages, stock options, and other benefits, intended to cushion the blow of losing one's job due to circumstances beyond their control. The term "golden parachute" derives from the idea that executives are being safely dropped from the sky, landing softly with a financial cushion to soften the landing.

These Clauses in the Employment Agreement Provide Pay and Benefits