TN 19 (01-24)

RS 01401.220 Golden Parachute Payments


Golden parachute payments are payments that corporations make to key executives, often in excess of their usual compensation, when ownership or control of the corporation changes.

EXAMPLE: A contract between a corporation and an executive provides that a payment will be made to the executive if their employment is terminated during the next three years. Eighteen months later, a change in ownership occurs. Six months thereafter, the executive's employment is terminated and they receive the payment under the terms of the contract.


Golden parachute payments are wages.

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RS 01401.220 - Golden Parachute Payments - 01/26/2024
Batch run: 01/26/2024