A managerial Imagine this: he woke up one morning and found out he had been fired. You think he’s freaking out, right?

In fact, this is usually not the case for senior managers at CEO, CMO and similar levels, because they have a golden parachute in their hands and can get out of difficult situations. without incurring damage or perhaps with profit. They can leave.

So what is this golden parachute?

In fact, the name reflects its meaning. This is a certainty that prepares fallen rulers for a soft landing.

Golden Parachute is a form of compensation included in the contracts of senior managers of companies and provided when they leave their jobs. luxury remuneration package we can say.

Dismissal, merger or takeover In such cases, these packages come into the picture and ensure that managers have various financial security.

In the package we mention the golden parachute large amounts of cash, special bonuses, financial assets such as shares or pension rights Other warranties such as these may be included.

In this way, the manager who has to leave the company for whatever reason without any loss can withstand this process. Moreover, having this agreement could even be an obstacle to his dismissal.

While the golden parachute is truly worth its weight in gold for managers, in the grand scheme of things it comes with some problems.

The most fundamental problem for the company is extremely expensive Of course it should be.

Even if the company is in a difficult situation, these packages must be paid for because they are included in the contract. astronomical costs It could put the company in an even more difficult situation.

Furthermore, this compensation package has a major impact on other employees in the company. injustice This can cause problems within the company.

The luxurious compensation package we mentioned can demotivate managers from thinking about the company’s interests.

The biggest problem is that senior managers know that they will receive a large compensation if they lose their jobs. It’s a motivation problem.

That is, this assurance protects the company by ensuring that managers are not sufficiently motivated to improve the company’s performance or protect the interests of shareholders. to achieve long-term goals can be an obstacle.

Finally, shareholders, knowing that company resources will be used for the managers’ interests, worry about the future of the company. to think negatively can cause.

In summary, the golden parachute provides serious security to senior managers and helps them avoid difficult situations. with minimal problems let him escape. But what damage this manager leaves behind after a soft landing is another matter…

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