Problem

High severance pay for top managers

Other Names:
Golden parachute severance agreements
Nature:

Managing directors and other top managers are often guaranteed from one half to one full year's salary at the conclusion of their contracts. This could be more than $1 million in addition to salary after only 2 or 3 years work. There is little evidence that a single manager adds this level of profitability to any company.

Incidence:

In 1991, more than half of the biggest US companies had "golden parachute" severance agreements, an increase from 35% in 1987.

Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 10: Reduced InequalityGOAL 16: Peace and Justice Strong Institutions
Problem Type:
E: Emanations of other problems
Date of last update
23.09.2019 – 16:08 CEST