Future Executive Bail Outs: Will Golden Parachutes Fill the American Business Skies

Discusses the so called “golden parachute,” the ability of an executive to bail out of a corporation that is experiencing a hostile takeover. The author discusses the effect of these agreements, their questionable legality, and the responsive courses of action that the legislature and judiciary may take. The authors state that since the shareholder is the most affected by golden parachutes, a statutory scheme which provides for notice and requires shareholder final approval would be the most equitable.