An employment agreement that guarantees a key executive lucrative severance benefits if control of the company changes hands followed by management shifts. Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job.
Benefits include items such as stock options, bonuses, severance pay, etc.
These contractual agreements are established during job negotiations (usually done through that executive's agent) prior to top executives (approved by the company's Board of Directors) being officially hired.
Fannie Mae fired its previous CEO, Franklin Raines, an African American, in December 2004 after accounting errors forced the company to restate profits by $9 billion. His golden parachute: receives an annual pension for life of $1.37 million when he retired from Fannie in late 2004.
Raines was also in line to receive $5.8 million in stock options and $8.7 million in deferred compensation to be paid through 2020, according to a U.S. regulatory filing. Raines was Fannie Mae CEO from 1991 until 2004.
It does not matter if the entity goes belly up. The parachute is already factored into the CEO's final compensation package which is just the exact opposite for everyday working folk, the Severance Package.
A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
Severance packages are most typically offered for employees who are laid off or retire.
Sometimes, they may be offered for people who resign, regardless of the circumstances; or are fired.
Policies for severance packages are often found in a company's employee handbook, and in many countries are subject to strict government regulation.
Severance contracts often stipulate that the employee will not sue the employer for wrongful termination or attempt to collect on unemployment insurance, and that if the employee does so, then he must return the severance money.
First off these people should be fired not rewarded.
Second, the government has no right to tell me that i now have another trillion dollars that i am accountable for.
Third, This just perpetuates the fall that is going to be incurred.
These institutions should have been allowed to fail regardless of the results. If you give risky loans and they fail, that is a business decision that you have to live with. It would have been dark times, but less so then the ones when all the governmental backed corporations get hit.
Free markets will regulate this. What if China called in all the loans, the US would be screwed and not be able to pay unemployment, welfare, social security, home heating, ect.
There is no reason to back up bad decisions by making more bad decisions on a federal level. This only encourages large corporations to make risky decisions because they know they can become to large to fail. Once this happens the government will bail them out.
This is governmental corporate financing. We need to allow these large companies to fail, we do not need to be run by large corporations that influence (and now run) the federal government.
The government needs to realize its role and stay the hell out of these kinds of things. Yes there will be recessions and their will be upswings. This is the economical cycle and it should not be subsidized by the government to make all times peachy, because the fall will be very very very very difficult, instead of very very difficult if we keep letting the government deal with it.
When you block a person, they can no longer invite you to a private message or post to your profile wall. Replies and comments they make will be collapsed/hidden by default. Finally, you'll never receive email notifications about content they create or likes they designate for your content.
Note: if you proceed, you will no longer be following .