High severance pay for top managers

Other Names:
Golden parachute severance agreements

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.


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
04.10.2020 – 22:48 CEST