Same As A Poison Pill?
Golden parachutes used to be excellent and reasonably nice severance packages.
They have become more like poison pills that are used to accomplish a lot of devious things like letting those interested in hostile takeovers know it will cost them enough to destroy the company satisfying contractual severances due to early termination.
There might be split factions on a board of directors that stacks as many CEO's on their side as possible, so they vote in an obscene severance package as a way to lock their person in for the duration.
There are a lot of reasons severance packages can get ridiculous. If the corporate president is on watch when a public financing event is to take place he might use that opportunity to push for golden parachutes at a time when any public resignation might jeopardize that funding. So he says here is what I want or I resign right now.
The CEO more often than not might know of skeletons in the closet that would be disastrous to the stock value that might give them a leverage for a ludicrous severance.
The most insidious of these is wallstreet and banking industries who have a CEO leaving under felonious conditions and taking a few hundred million or more with them when already being scrutinized for fraud. That's about definitely being able to expose truly prosecutable actions.
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