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LSDefine

Simple English definitions for legal terms

golden parachute

Read a random definition: tax lease

A quick definition of golden parachute:

Golden parachute is a fancy term for a special payment agreement that some important people in a company get if they lose their jobs or if the company gets sold. This agreement gives them some security, but some people think it's not fair because it can cost a lot of money and might not be necessary. Sometimes, people even go to court to argue about it. But if the people who own the company agree to it, then it's allowed.

A more thorough explanation:

Golden parachute refers to a payment agreement that provides officers and management with financial security if they lose their jobs or face significant changes to their jobs due to a sale of their company. This payment is usually made in the form of a lump sum or a severance package.

  • When a public company faces a hostile takeover, the officers and management may lose their jobs. In such a situation, the golden parachute provides them with financial security.
  • Suppose a company wants to hire a skilled officer from another company. In that case, they may offer a golden parachute to the officer to encourage them to join the company.
  • Golden parachutes can also be used as part of a poison pill strategy, where a company makes itself less attractive to a hostile bidder by offering a large payout to its executives if the company is taken over.

The examples illustrate how golden parachutes can provide financial security to officers and management in various situations. However, they can also be controversial as they can cost a significant amount of money and may discourage beneficial change.

Overall, golden parachutes are allowed if stockholders agree on the payment packages, but recent litigation has surrounded them as being a breach of fiduciary duties.

going out | golden rule argument

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misoissocute
14:38
I went private bcz I had to show the chat to my friends and I didnt want them to look at my stats lol
misoissocute
14:39
but yeah nw it made me chuckle
GodsPlanUltimately
14:39
I had to hold my smile laugh back in class right now.
WorthlessAttractiveZombie
14:39
somebody needs to change their name to YMisYoMama so nobody falls for it again
babycat
14:39
why would you ruin the fun like that
babycat
14:39
typical yalie
HopefullyInLawSchool
14:39
I will strike again, I will come up with new ways
WorthlessAttractiveZombie
14:40
omg she remembers me
GodsPlanUltimately
14:40
You are all adorable. A nice break over the cycle stress.
HopefullyInLawSchool
14:40
Whenever I see USD I think its San Diego and its South Dakota ):
BelowMedians
14:40
I applied UVA ED and. It’s been 20 days and haven’t heard anything. Am I cooked?
JumpySubsequentDolphin
14:40
ANITHER YOUR MOM JOKE
JumpySubsequentDolphin
14:41
hopefully you’ve got superpowers at this point
GoodLuckEveryone
14:42
has anyone ed interviewed with ucla?
HopefullyInLawSchool
14:43
I did!
HopefullyInLawSchool
14:44
@GoodLuckEveryone They asked about why UCLA, why law, the typical stuff, I spoke about Joe alittle, nothing to crazy tho (:
GodsPlanUltimately
14:45
I know Hillsdale College has a reputation for being strange but I attended a cool religious law even there so would it be hurt me to put it in a statement given their rep? I don't want them to think I'm from the stone age :c
14:46
why is a 179 applying to davis leave me alone
HopefullyInLawSchool
14:47
@GodsPlanUltimately: I think it's fine to talk about
GodsPlanUltimately
14:48
@HopefullyInLawSchool: Okay! Thank you. :)
hopefully i see your play
very good 10/10
misoissocute
14:56
@GodsPlanUltimately: My boyfriend is a hillsdale grad; its reputaple for their education and such; its only problamtic because of its policies and its refusal to take federal money
GoodLuckEveryone
14:57
@HopefullyInLawSchool: i hope you don't mean joe the way I think you mean it haha
GodsPlanUltimately
14:58
@misoissocute Okay I can be real then (wasn't sure of the vibes of the chat) I absolutely loved the CCA event I attended there! Their education is stellar and that campus is beautiful. :D
glovediedthisishismom
14:58
do u guys think desantis will appoint gaetz to the senate
might have been a crazy small HLS II?
GoodLuckEveryone
14:59
@HopefullyInLawSchool: how do you think you did? i was nervous beyond belief but I tried to stay on my feet. i couldn't tell how I did though
misoissocute
15:00
@GodsPlanUltimately: I would love to go to a Catholic based school and if you are looking for a religious based school as well, its helpful! I actually love Hillsdale but I am from the west coast and did not even know it existed until I met my bf
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