Golden Parachute Payments
Golden parachute payments are the compensation an executive would receive on termination following a change in control — disclosed as a table in the proxy.
What the table shows
Item 402(t) requires a table quantifying, per named executive, the cash severance, equity acceleration and benefits that would apply if the company were acquired and the executive terminated without cause (or resigned for good reason) — valued as of the fiscal year end.
The figures are scenario values, not payments made; they move with the stock price and deal terms until an actual change in control.
Frequently asked
Are golden parachutes actually paid?
Only if the triggering event occurs — an acquisition followed by qualifying termination. The proxy table estimates the amount in that scenario; it is a what-if, not compensation realized.
Related terms
Next term: Performance Stock Units (PSU) (10 of 15)