April 26, 2019  
 
  Articles for Entrepreneurs  
 

Golden Parachute

 

 
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Definition of Golden Parachute

A Golden Parachute is an employment perk that is given to upper management.
(Definition continues below)

Golden parachute contract terms will give a large payout to executives upon the occurrence of certain change of control transactions.

For example, two common golden parachute triggers are if the company is bought out or if a certain percentage of company equity is purchased by an outside entity.

 

 

 

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