The guarantee by the employer to pay specified compensation and benefits to executives in the case of termination due to downsizing or restructuring is known as
A) an early retirement buyout package.
B) supplemental unemployment benefits.
C) a guaranteed annual wage clause.
D) a golden parachute clause.
E) wage protection insurance.

Question

Quizplus · Accepted Answer

A golden parachute clause is a contractual agreement that promises executives significant financial compensation and benefits in the event that they lose their job due to downsizing, restructuring or a merger or acquisition. This package is designed to provide a measure of financial security for executives whose employment may be at risk.

The Guarantee by the Employer to Pay Specified Compensation and Benefits