A Short History of Golden Parachutes

Harvard Business Review

Golden parachutes can’t seem to stay out of the news. Golden parachutes like these are hardly novel in American business. Golden parachutes such are now paid out even when executives leave amid scandal. Firms began adopting golden parachute-style payout packages in the late 1970s. The junk bond market made financing large takeovers possible and even the biggest among the Fortune 500 firms were no longer safe from a forced acquisition.