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.
Broader Problems:
Official privilegeDiscriminatory wage scales Related Problems:
High minimum wagesUnfair social security entitlementsExcessive salaries of international civil servants Subject(s):
Law → AgreementsManagement → Management
Social Activity → Employment conditions
Transportation, Telecommunications → Aviation
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST