Golden parachute (Ro.: clauza de despagubire in cazul denuntarii contractului de mandat de catre societate)(See also: compensation for loss of office, golden handshake, severance packages) = an agreement by which the employer is obliged to compensate an employee (usually an executive of a company) by paying him/her a package in case of termination of employment determined by change in ownership or control of the company.


Useful resources

Legislation - Golden Parachute in U.S. Code [English] - The Federal Deposit Insurance Act, Section 18 (k) [English] - UK Companies Act 2006 – Payments for loss of office [English]

Case Law - Delaware Supreme Court, In re Walt Disney Co. Derivative Litigation, 2005

Online Publications - Coffey, Peter L., 1984, Golden Parachutes: A Perk that boards Should Scrutinize carefully, Marquette Law Review, Volume 67, Issue 2 - Storss, Alvin L., 1990, Golden Parachute Payment under Proposed Treasury Regulation Section 1280G-1: Analysis and Recommended Changes, University of Baltimore Law Review, Volume 19, Issue 3 - Campbell, Drew Harrison, 1990, Golden Parachutes: Common Sense from the Common Law, Ohio State Law Journal, Volume 51, Issue 1 - Hankinson, Jamie Dietrich, 2005, Golden parachute tax provisions fall flat: tax gross-ups soften their impact to executives and Square D overinflates their coverage, Stetson Law Review, Volume 34 - Nussbaum, Matthias, 2005, Golden handshakes and golden parachutes: severance packages for corporate executives, UBC Theses and Dissertations Stapledon, Geof, 2005, Termination Benefits for Executives of Australian Companies, Sydney Law Review, Volume 27:683 Stras, David R., Scott, Ryan W., 2005, Retaining Life Tenure: The Case for a Golden Parachute, Washington University Law Review, Volume 83, Issue 5 - Lederman, Lawrence, 2007, Disney Examined: A Case Study in Corporate Governance and CEO Succession, New York Law School Law Review, Volume 52 - Fiss, Peer C., Kennedy, Mark T., David, Gerald F., 2012, How Golden Parachutes Unfolded: Diffusion and Variation of a Controversial Practice, Organization Science, Volume 23, Number 4


McGee, Robert W., 2008, Corporate Governance in Transition Economies, Springer Science + Business Media, p. 82

Kieff, F. Scott, Paredes, Troy A., 2010, Perspectives on Corporate Governance, Cambridge University Press, p. 205 

Bodolica, Virginia; Spraggon, Martin, 2015, Mergers and Acquisitions and Executive Compensation, N.Y.: Routledge, p.124


By Alexandra Mureșan