Small business need-to-know………. this is an interesting read. I think everyone knows, has heard of or is otherwise familar with executive golden parachutes…..but it is something else to see the details of some of these in black and white.
Excerpt…….The principle of the golden parachute is a sound principle. The principle of incentivizing an executive into retirement is another sound principle. Golden parachutes are designed to protect executives, primarily CEOs, from financial harm when they make M&A decisions that may be in the best interest of shareholders but that might lead to their losing their jobs. Incentivizing executives into retirement, by having stock compensation continue to vest during retirement, is also in the best interest of shareholders because it ensures that the decisions made by the executives are in the long-term interest of the company despite the proximity of their retirement age.
Since these principles are sound, what went wrong?