What is Golden Parachute? | Meaning & Definition | Akrivia HCM

A golden parachute is a clause in an executive contract where bonuses, salaries, etc., are paid in the event of dismissal or layoff. This clause is intended to protect the integrity and reputation of the executive by financially supporting them during this transition period. Typically benefits include a payout of retirement contributions and a contractual guarantee that the executive will be rehired.

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