"Golden Parachutes": A Closer Look
Embargo Lift Date
This article describes various aspects related to the policy of golden parachutes (GP). Discussed are golden parachutes in regards to changes in organizational control, voluntary and involuntary termination, and guaranteed employment provisions. In regards to the question of who has golden parachutes, the authors examined the proxy statements of all of the 1981 Fortune 500 companies. Content analysis of these statements was conducted. The authors determined that 11 percent of those firms had GPs. Also discussed is what is included in a GP, the pros and cons of GPs, and the legal perspectives.