The term “golden parachute” originated in the USA in the 1970s, referring to financial compensation paid to top executives of companies in the event of their dismissal due to change of ownership or a takeover. An alternative of a financial payment is a “parachute” in the form of shares or securities.
The biggest financial compensation
1. The world’s largest "golden parachute" sum was received by John "Jack" Welch Jr., the former chairman of General Electric (GE). He retired in 2001, receiving compensation in the amount of $417 million dollars. Welch, who was considered the toughest executive in the history of American business, ran the company for 27 years; Fortune magazine named him "the best manager of the century."
2. Former director of the American oil company ExxonMobil Lee Raymond ranks second in terms of the “compensation package” amount. He resigned in 2005 with a “parachute” of shares worth $320 million dollars. Within 12 years of running the company, Raymond managed to turn it into a global oil giant.
3. Former head of the US corporation UnitedHealth Group, William McGuire is on the third place in the ranking of largest "golden parachutes" owners. His compensation totaled $286 million dollars. Within 15 years, McGuire turned a loss-making firm into the largest US insurance company.
A "golden parachute" has become a relatively standard and widespread practice in various countries worldwide. In the event of a breach of contract by the employer, the company pays a large amount of money to an employee in the amount of several annual bonuses or salaries.
On average, the compensation amount accounts for 12% of the firm’s annual profit.
The clause on the “severance parachute” is included in the employment contract only if the company’s management team sees an economic benefit in hiring a particularly qualified employee.
The "golden parachute" implies the payment of substantial financial compensations to top executives of companies. However, how can ordinary people protect themselves from such risks?
How to free yourself from the fear of poverty?
All people have the right to be happy, successful and lead a prosperous and comfortable life. An average person — not a millionaire, not a high-ranking official, not the head of a corporation, but an engineer, teacher, cook, bus driver or housewife must also have the “insurance” in case of unforeseen life circumstances.
People must be protected from emerging threats, such as dismissals, reduced income, unexpected expenses that can entail significant material damages.
Every person must have a “safety cushion”
that helps overcome financial problems.
One of the universal laws of life says that a person cannot feel confident in the surrounding environment if the environment itself is unstable. Stability and confidence in the future, the non-existence of material hardships, as well as the opportunity to take care of your family and loved ones are of great importance to everyone!
GOLD will help you strengthen your Financial Security!
It is the best tool to achieve independence and success.
Gold serves as a global currency, the best asset for capital preservation and accumulation.
Personal gold reserves are a reliable “safety cushion” in times of economic crisis and financial difficulties. Savings in the form of investment gold bars are the guarantor of your material well-being and affluence.
The stronger the golden shield is, the more strokes of bad luck it can endure.
Running your own business on gold is your “golden parachute”!
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