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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.

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The Compensation Silly Season

Harvard Business Review

While these critics have a point about income inequity in America, their arguments don't add much insight to the debate about how these executives are paid and whether these huge incentives in cash, options, and stock really do motivate them to work harder or smarter. Why so little light from so much coverage?