Wednesday, June 1, 2011

What is a "golden parachute"?

Jumped from great heights - get compensation. The new concept is gaining popularity in wealthy circles. "Golden parachute" means a bonus payment of funds for termination of employment. In other words, the mercy of a former employee. Basically, this phenomenon concerns the major executives - heads of banks, companies, politicians and media stars. "Golden parachute" There are two types: contractual and special. Eminent experts, settling on the service to a new employer, usually require the inclusion of a special item in the employment agreement for compensation in the event of early termination of relations. Typically, this lump sum, as measured by a specific amount or quantity of salaries. Special "golden parachute" arises from professionals in the event the employer wishes to get rid of them "in an amicable way." Payments are made so that the employee is not holding his evil and went to work for competitors. In rare cases, provided the "commanding jumping, then the compensation provided in case of leaving the entire team of specialists. "Golden parachute" is a stabilizer system of checks and balances: If you change the founder of the new owner is not advantageous to dissolve the old team, if he does, you'll have to seriously pay. The biggest "parachutes" are encountered in business. When in 2008 the resignation of company CEO «Lehman Brothers» Richard Fuld he had paid compensation in the amount of $ 300 million - this record is not broken. Head «British Petroleum» Tony Hayward, will receive for abdication 600 thousand pounds and 1 million for contractual obligations. "Golden parachute" for the 16 top managers of Russian company "OGK-2" was 557 million rubles. And the recently departed president of Bashkortostan Murtaza Rakhimov, "was awarded" one hundred thousandth of pensions and social security.

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