Golden parachutes: False golden parachutes

Compensation arrangements for executives typically provide large pay-offs if their company is taken over. These so-called «golden parachutes» often come in the form of severance or accelerated payments of stock grants. These are intended to encourage bosses to consider a buyout offer on its own merits, even if it means losing his or her job. Yet in the current M&A wave, many executives are staying put. That means they often get paid twice for the same job. Take the case of John Wilder, chief of...